ALIMENTATION: Moody's Assigns Loss-Given-Default Ratings--------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US and Canadian Retail sector, the ratingagency confirmed its Ba1 Corporate Family Rating for AlimentationCouche-Tard, Inc.

Additionally, Moody's held its probability-of-default ratings andassigned loss-given-default ratings on these loans and bond debtobligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Laval, Quebec, Alimentation Couche-Tard, Inc.,operates or licenses about 3,500 convenience stores in theUnited States and Canada under the "Circle K", "Couche-Tard","Mac's", and other banners. The company also licenses around4,200 "Circle K" convenience stores in Mexico and East Asia.

AMERICAN AIRLINES: Earns $1 Million in Quarter Ended Sept. 30-------------------------------------------------------------American Airlines, Inc., posted a $1 million net income for thethree months ended Sept. 30, 2006, on $5.83 billion of revenues,compared to a $161 million net loss earned on $5.47 billion ofrevenues for the same period in 2005.

The company's balance sheet at Sept. 30, 2006, showed$26.7 billion in total assets and $27.5 billion in liabilities,resulting in a stockholders' deficit of approximately $800million.

At Sept. 30, 2006, the company had $5 billion in unrestricted cashand short-term investments, an increase of $1.2 billion fromDec. 31, 2005. Net cash provided by operating activities in thenine-month period ended Sept. 30, 2006 was $1.5 billion, anincrease of $679 million over the same period in 2005. Theincrease was primarily the result of improved economic conditionswhich allowed the industry to increase fare levels.

The company contributed $184 million to its defined benefitpension plans during the nine month period ended Sept. 30, 2006,and completed its required 2006 calendar year funding bycontributing an additional $39 million on Oct. 13, 2006.

As of Sept. 30, 2006, the company had commitments to acquire anaggregate of 47 Boeing 737-800s and seven Boeing 777-200ERs in2013 through 2016. Future payments for all aircraft, includingthe estimated amounts for price escalation, will be approximately$2.8 billion in 2011 through 2016.

American Airlines currently expects fourth quarter mainline unitcosts to decrease more than four percent year over year. Capacityfor the company's mainline jet operations in the fourth quarter isexpected to decrease approximately 0.5 per cent year over year.

American Airlines, Inc. -- http://www.AA.com/-- American Eagle, and the AmericanConnection regional airlines serve more than 250cities in over 40 countries with more than 3,800 daily flights.The combined network fleet numbers more than 1,000 aircraft.American Airlines, Inc. and American Eagle are subsidiaries of AMRCorporation.

* * *

As reported in the Troubled Company Reporter on April 25, 2006,Standard & Poor's Ratings Services placed its ratings on AMR Corp.(B-/Watch Pos/B-3) and subsidiary American Airlines Inc. (B-/WatchPos/--) on CreditWatch with positive implications. TheCreditWatch placement reflected improving earnings and cash flowprospects, which should translate into a strengthened financialprofile. The 'B+' bank loan rating on American's $773 millioncredit facility was placed on CreditWatch, but the '1' recoveryrating (which addresses recovery prospects in a default scenario)was not placed on CreditWatch.

As reported in the Troubled Company Reporter on Feb. 24, 2006,Moody's Investors Service affirmed all debt ratings of AMR Corp.,and its primary subsidiary American Airlines, Inc. - corporatefamily rating at B3 -- as well as all tranches of the EnhancedEquipment Trust Certificates supported by payments from Americanand the SGL-2 Speculative Grade Liquidity Rating.

AMES DEPARTMENT: Court Approves Settlement With MGM Home Ent.-------------------------------------------------------------The Honorable Robert E. Gerber of the U.S. Bankruptcy Court forthe Southern District of New York approves the stipulation betweenMetro-Goldwyn-Mayer Home Entertainment, Inc., Ames DepartmentStores, Inc., and GMAC Commercial Finance LLC, formerly known asGMAC Commercial Credit LLC.

As reported in the Troubled Company Reporter on Oct. 9, 2006, MGMcommenced in September 2002 an adversary proceeding seeking$298,242 from the Debtors and GMAC.

The issue has been joined, pretrial discovery has taken place,and pretrial requests have been brought.

Settlement discussions have also ensued between the partieswherein they agreed to discontinue the Adversary Proceeding.

The parties stipulated that:

* GMAC CF will pay $10,000, and the Debtors will pay $25,000, to MGM immediately after the settlement agreement earns Court Approval;

* upon MGM's receipt of the settlement amounts and the dismissal of the Adversary Proceeding, the parties will be deemed to have waived and released each other from any and all claims that they may have against each other as of Sept. 27, 2006, and which in any way relate to the Complaint;

* the Debtors will file a voluntary dismissal of the preference adversary proceeding styled Ames Merchandising Corporation v. MGM Home Entertainment, Adv. Pro. No. 03-08569, with prejudice and without costs, immediately after the Court's approval of the Settlement Agreement;

* upon the dismissal of the Adversary Proceeding and the Preference Adversary Proceeding, the Debtors will be deemed to have forever discharged MGM from all claims and causes of actions, which they have against MGM in connection with their Chapter 11 cases;

* upon the dismissal of the Adversary Proceeding, GMAC CF and the Debtors will be deemed to have waived and released each other from any claims and causes of actions that they may have against each other as of Sept. 27, 2006, which in any way relate to the Complaint; and

* after MGM's receipt of the settlement payments and the dismissal of the Preference Adversary Proceeding, MGM will file a voluntary dismissal of the Adversary Proceeding with prejudice and without costs. MGM will then indemnify the Debtors and GMAC CF for all costs and expenses incurred relating to any claims by anyone other than the Debtors, GMAC CF, and their affiliates in any way related to the Complaint.

AMES DEPARTMENT: Has Until April 26 to Solicit Plan Acceptances---------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkextends the period during which Ames Department Stores and itsdebtor-affiliates have the exclusive right to solicit acceptancesof their Chapter 11 Plan through and including April 26, 2007.

As reported in the Troubled Company Reporter on Oct. 9, 2006, theDebtors filed their Chapter 11 Plan of Reorganization andDisclosure Statement on Dec. 6, 2004. The Court had previouslyextended the Debtors' exclusive solicitation period to Oct. 26,2006.

Since the Debtors decided to wind down their business, they havebeen diligently laboring to maximize values for creditors.Specifically, the Debtors have:

(1) sold all their inventory;

(2) fully satisfied their obligations under their postpetition financing facilities;

(3) rejected or assumed and assigned majority of their unexpired leases of nonresidential property in accordance with Section 365 of the Bankruptcy Code;

(4) been settling and reconciling claims;

(5) commenced and are continuing to prosecute and collect substantial sums from avoidance actions;

(6) sold, or are in the process of selling, their remaining real estate holdings;

(7) made interim distributions to holders of administrative expense claims; and

While the Debtors are optimistic that the Plan will be confirmed,at this point, it is not possible for them to determine:

-- the full extent of their administrative obligations; -- the resources available to satisfy the obligations; and -- at what point they will achieve administrative solvency.

The Debtors anticipated that they will have approximately$74,900,000 in administrative expense claims, many of which stillneed to be fully reconciled.

As a result, the Debtors are in no position to determine if andwhen a recovery will be available for prepetition creditors untilthey complete the process of liquidating their remaining realproperty interests, reconciling administrative expense claims, andprosecuting avoidance actions.

In light of these circumstances, an extension of the solicitationperiod is warranted and will avoid unnecessary intrusion onmanagement's time occasioned by a competing plan.

Moreover, the extension will not prejudice any party-in-interest,but rather will afford the Debtors an opportunity to solicitacceptances of a plan that will be confirmable.

ARBY'S RESTAURANT: Signs Development Commitments for New Locations------------------------------------------------------------------Arby's Restaurant Group, Inc. continues to expand its reach withthe signing of commitments to develop 34 new Arby's restaurants.

The agreements, which include three new and ten existingfranchisees, provide for the development of new Arby's restaurantsin Arizona, California, Florida, Georgia, Illinois, Iowa,Michigan, Ohio and Texas.

"We are working towards a long term goal of having 5,000 domesticArby's restaurants so that we can increase access and convenienceto our loyal customers," said Tom Garrett, President and COO,Arby's Restaurant Group, Inc." While many of our franchisees havebeen with us for generations, we continue to attract newentrepreneurs as well. Our new franchisees realize we offer aunique business opportunity in the fast food industry."

Signed development agreement with existing franchisees include:

-- Charlie Harmon - Charlie Harmon, President of FX4, currently owns and operates 47 Arby's in the Phoenix market and has signed on to open 16 more. Mr. Harmon, who started his restaurant career at 16 as a bus boy, previously worked for Arby's then largest franchisee, RTM, before owning and operating his own Arby's restaurants starting in 2000.

-- Mark Rhude - Mark Rhude of Marglen, Inc. currently owns and operates eight Arby's restaurants in Arizona and has agreed to open three Arby's restaurants in Tucson, Rincon and Oro Valley, Arizona. Mr. Rhude has been an Arby's franchisee since 1988.

-- Bob McDonald - Bob McDonald of Capital Foods, Inc. currently owns and operates seven Arby's in Ohio and has signed on to open two more located in New Albany and Pataskala, Ohio. Mr. McDonald has been an Arby's franchisee since 1996.

-- Stephen Huse - Stephen Huse joined the Arby's family just three years after its inception in 1964 and currently owns and operates 30 restaurants in Illinois and Indiana. Mr. Huse has agreed to open an additional Arby's restaurant in Clinton, Iowa.

-- Lunan Corporation - A family owned and operated franchisee, Lunan Corporation has been a part of the Arby's organization for nearly forty years and holds the distinction of opening Arby's 3,500th restaurant in Antioch, Illinois in 2006. Lunan currently owns and operates 64 Arby's restaurants in California, Illinois, and Nevada, and has signed on for one more to open in Yorkville, Illinois.

-- James Pipino - James Pipino of Niles Restaurant Business, Inc. joined Arby's as a franchisee in 1992 and currently owns and operates 10 restaurants across Ohio. Mr. Pipino has signed an agreement to open an additional Arby's in North Lima, Ohio.

-- William Brusslan - William Brusslan owns and operates three Arby's restaurants in California and has agreed to add one more in Simi Valley, Calif. Mr. Brusslan has been with Arby's since 1969.

-- Michael P. Schiappa - Michael Schiappa of Schiappa Foods Corp. has been with the Arby's system since 2002 with six restaurants in Florida. Mr. Schiappa has signed on to open one more Arby's in Fort Pierce, Florida.

-- Michael Kay/Jason Palmer - Michael Kay and Jason Palmer have agreed to add an additional Arby's restaurant in Douglas, Georgia to their restaurant portfolio. Messrs. Kay and Palmer currently own and operate one Arby's in Vidalia, Georgia and joined the system in 2005.

-- Patrick Higgins - Patrick Higgins currently owns and operates one Arby's restaurant in Troy, Mich. and has agreed to open another in Sterling Heights, Mich. Mr. Higgins originally joined the Arby's system in 2004 as a Director of Brand Marketing for Sybra, Inc. before becoming an Arby's franchisee in 2005.

-- Gene Lehman has agreed to build four restaurants in the Orlando area and one restaurant in Gainesville, Florida.

-- Perrin Larsh has a commitment to build one Arby's in Hill Country Village, Texas.

About Arby's

Based in Atlanta, Arby's Restaurant Group, Inc. -- http://www.arbys.com/--, is the franchisor of the Arby's restaurant system, which consists of more than 3,500 restaurantsworldwide, and is owner and operator of more than 1,000 of thoserestaurants located in the United States.

Moody's also revised its ratings on the company's $100 millionSenior Secured Revolver Due 2011 and $620 million Senior SecuredTerm Loan Due 2012. Moody's assigned the debentures an LGD2rating suggesting lenders will experience a 28% loss in the eventof default.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

All ratings were removed from CreditWatch, where they were placedJune 23, 2006, with negative implications, following S&P's reviewof financial policies and operating performance. The outlook isnegative.

"The ratings on Arby's reflect its participation in the highlycompetitive quick-service sector of the restaurant industry,competition from significantly larger players, and a highlyleveraged capital structure," Standard & Poor's credit analystJackie Oberoi said.

Large players dominate the highly competitive quick-servicesandwich sector of the restaurant industry. Arby's has arelatively small 4% market share compared with about 35% forMcDonald's Corp., 11% for Burger King Corp., and 11% for Wendy'sInternational Inc.

Moreover, Arby's average unit volumes--at about $850,000--arerelatively low compared with $1.8 million for McDonald's and$1.3 million for Wendy's. Still, Arby's has an established brandand niche position specializing in roast beef sandwiches.

Operating results have been far below expectations due to slower-than-planned integration progress and higher-than-expected costsrelated to the 2005 acquisition of RTM (formerly Arby's largestfranchisee).

The acquisition exposed Arby's to more of the typical operatingrisks for restaurant companies, including rising utility and laborcosts, as more than 50% of EBITDA is now generated by company-operated restaurants.

Instead, increased costs have caused operating margins to decline.Arby's parent, Triarc Cos. Inc., recently replaced the seniormanagement at Arby's in an effort to turn around performance.

System-wide same-store sales rose 3.5% in the first eight monthsof 2006 and are expected to remain positive for the year. Creditmeasures are currently weak for the rating category but areexpected to improve over time as synergies related to the RTMacquisition are realized and one-time integration costs subside.The company is highly leveraged, with total debt to EBITDA for the12 months ended July 2, 2006, at more than 6x. EBITDA coverage ofinterest is thin at less than 2x.

The upgrades are due to the repayment of several loans in thetransaction as well as the partial pay down of the ColonnadePortfolio loan. As of the October distribution date, thetransaction balance had paid down 82.4% to $252.2 million from$1.4 billion at issuance.

Despite the partial pay down of the Colonnade loan (52.4%), Fitchremains concerned with the ongoing performance of this speciallyserviced loan. As of September 2006, the overall occupancy in theremaining Atlanta based collateral was 61%. Occupancy at theMinneapolis property remains at 35%. All of the remainingcollateral backing the Colonnade loan is being marketed for sale.Fitch will continue to closely monitor the performance of thisloan.

Two additional loans remain in the transaction; the JW Marriotthotel in Washington D.C. (27.8%) and the Westland Shopping Center(19.8%) in Westland MI. Both maintain investment grade creditassessments.

The review of the loans in this transaction is based on financialinformation for the year ending Dec. 31, 2005, provided by theservicers, and updated occupancy information as of September 2006.

All classes are privately placed pursuant to rule 144A of theSecurities Act of 1933. The certificates represent beneficialownership interest in the trust, primary assets of which are 18floating-rate loans having an aggregate principal balance ofapproximately $1,149,644,401, as of the cutoff date.

The raised and affirmed ratings on the pooled certificates reflectcredit enhancement levels that provide adequate support throughvarious stress scenarios.

The upgrades of several senior certificates reflect the defeasanceof $209.4 million (12%) in collateral since issuance. The raisedratings on the raked certificates reflect the improved performanceof the underlying collateral properties, which provide 100% of thesupport for those certificates.

As of the Oct. 11, 2006, remittance report, the collateral poolconsisted of 147 loans with an aggregate trust balance of$1.683 billion, down from 150 loans with a $1.768 billion balanceat issuance.

Based on this information, Standard & Poor's calculated a weightedaverage debt service coverage of 1.68x, up from 1.59x at issuance.

The current DSC figure excludes the loans for the defeasedcollateral. All of the loans in the pool are current. To date,the trust has experienced one loss totaling $200,000.

The top 10 loans secured by real estate have an aggregateoutstanding balance of $536.8 million (37%) and a weighted averageDSC of 1.85x, compared with 1.94x at issuance.

The fifth-largest exposure ($37.6 million, 2%) posted a full-year2005 DSC of 1.65x. The coverage declined to 0.84x for the six-month period ended June 2006, however, due to an increase inoperating expenses coupled with the end of the loan's interest-only period.

The loan is secured by the 218,170-sq.-ft. Colonnade OfficeBuilding in Coral Springs, Fla. Standard & Poor's reviewedproperty inspections provided by the master servicer for all ofthe assets underlying the top 10 loans. One property wascharacterized as "excellent," while the remaining collateral wascharacterized as "good."

Credit characteristics for three of the top 10 loans in the poolremain consistent with those of investment-grade obligations.

Details of these loans are:

-- The largest exposure in the pool, the Hines-Sumitomo Life Office portfolio, is encumbered by a $264.6 million class A note and a $51.8 million class B note.

The A note is divided into two pari passu pieces, of which $160 million serves as the trust collateral. The B note provides 100% of the cash flow to the raked certificates noted with an "HS" prefix.

The loan is secured by the fee and leasehold interests in three office properties totaling 1.2 million sq. ft.

The 675,678-sq.-ft. 425 Lexington Avenue office property in Midtown Manhattan is 100% occupied and spans the entire block between East 43rd Street and East 44th Street.

The 280,404-sq.-ft. 499 Park Avenue office property, also in Manhattan, was 88% occupied as of June 30, 2006.

The 231,641-sq.-ft. 1200 19th Street office property in Washington, D.C., was 100% occupied as of June 30, 2006.

The combined year-end 2005 DSC for all three properties was 2.34x, down from 2.66x at issuance. The decline was attributable to $11.4 million in capital expenditures for tenant improvements at the 425 Lexington Avenue property. For the six months ended June 30, 2006, the DSC was 3.86x. Standard & Poor's adjusted loan-to-value ratio (LTV) is 49%.

-- The second-largest exposure in the pool, the 1328 Broadway loan, has a senior and subordinate interest. The senior interest has a trust balance of $96.6 million (8%). The subordinate interest is $35.4 million and provides 100% of the cash flow supporting the class BW certificates.

The loan is secured by a 351,750-sq.-ft. office property in Midtown Manhattan. The ground floor of the property is leased to retail tenants that account for 56% of the revenue produced at the property.

The 1328 Broadway loan appears on the watchlist because the property reported a 1.23x DSC for the three-month period ended March 2006, down from a year-end 2005 DSC of 1.54x.

The decline was primarily due to lower expense reimbursements resulting from a real estate tax reimbursement credit that occurred during the first quarter of 2006.

Occupancy was 99% as of June 30, 2006. Standard & Poor's adjusted NCF is 15% above the level at issuance.

-- The third-largest exposure, Newgate Mall, has a trust balance of $42.9 million (3%).

The loan is secured by 605,380 sq. ft. of a 724,299-sq.-ft. regional mall in Ogden, Utah.

The sponsor of the loan and manager of the property is General Growth Properties Inc. (BBB-/Negative/--). Standard & Poor's adjusted NCF is 7% above the level at issuance.

In addition to the 1328 Broadway loan, there are nine other loanson the watchlist totaling $81.6 million (5% of the pool).Standard & Poor's stressed the loans on the watchlist and otherloans with credit issues as part of its analysis. The resultantcredit enhancement levels support the raised and affirmed ratings.

The upgrade is due to the defeasance of nine loans (3.0% of thepool), stable pool performance, and scheduled amortization. As ofthe October 2006 distribution date, the pool's aggregate principalbalance has decreased 5.3% to $1.15 billion from $1.21 billion atissuance. There are currently no specially serviced loans.

There are seven credit-assessed loans (25.5%) in the pool; all areconsidered investment grade. Fitch reviewed year-end 2005operating statement analysis reports and other performanceinformation provided by the master servicer. The Fitch stresseddebt service coverage ratio for the loan is calculated based on aFitch adjusted net cash flow and a stressed debt service based onthe current loan balance and a hypothetical mortgage constant.

North Shore Towers (6.4%) is secured by shares in a 1,844-unitcooperative apartment complex in Floral Park, Queens, New York.Occupancy as of June 2006 is 99.3% compared to 100% at issuance.The Fitch stressed DSCR, based on an imputed NCF which assumesmarket rate rental income, remains strong at 4.19 times (x) for YE2005 compared to 5.32x at issuance.

1290 Avenue of the Americas (6.1%) is secured by a 43-story classA office building totaling 2 million square feet, located inmidtown Manhattan. The whole loan was divided into four paripassu notes and a subordinate B-note. Only the $70 million A-4note serves as collateral in the subject transaction. As of YE2005, the Fitch stressed DSCR increased to 1.59x from 1.46x atissuance. Occupancy as of April 2006 is 97.9% compared to 98.7% atissuance.

575 Broadway (2.3%) is secured by a 152,299 sf office building,with basement and ground floor retail space, located in SoHo, NewYork City. In January 2006, the six-story building was engulfedby a fire. Currently, the Prada store and ground floor restaurantare open for business and American Eagle Outfitters is expected toopen for business by the end of the fall. The majority of theoffice tenants have moved back into the building; however,renovations are still ongoing. As of YE 2005, the Fitch stressedDSCR was 2.28x from 1.57x at issuance.

The remaining five credit assessed loans: Federal Center Plaza(5.9%), One Canal Place (2.5%), Towne Mall (1.3%), and MountPleasant Villa Apartments (1.1%) have performed better or remainedstable since issuance.

BEST MANUFACTURING: Panel Hires Otterbourg Steindler as Counsel---------------------------------------------------------------The U.S. Bankruptcy Court for the District of New Jersey allowedthe Official Committee of the Unsecured Creditors appointed inBest Manufacturing Group LLC and its debtor-affiliates' chapter 11cases, to employ Otterbourg, Steindler, Houston & Rosen, P.C., astheir lead bankruptcy counsel.

As reported in the Troubled Company Reporter on Sept. 18, 2006,Otterbourg Steindler will:

a) assist and advise the Committee in its consultation with the Debtors relative to the administration of the Debtors' cases;

b) attend meetings and negotiate with the representative of the Debtors;

c) assist and advise the Committee in its examination and analysis of the conduct of the Debtors' affairs;

d) assist the Committee in the review, analysis and negotiation of the filed plan and disclosure statement, as well as any plan(s) of reorganization or related disclosure statement(s) that may be filed;

e) assist the Committee in the review, analysis, and negotiation of any financing agreements;

f) take all necessary action to protect and preserve the interests of the Committee, including:

i) possible prosecution of actions on its behalf,

ii) if appropriate, negotiations concerning all litigation in which the Debtors are involved, and

iii) if appropriate, review and analysis of claims filed against the Debtors' estates;

g) prepare on behalf of the Committee all necessary motions, applications, answers, orders, reports and papers in support of positions taken by the Committee;

h) appear, if appropriate, before the Court, the Appellate Courts, and the U.S. Trustee, and protect the interests of the Committee before those Courts and before the U.S. Trustee; and

Mr. Hazan assured the Court that his firm does not represent norhold any interest adverse to the Debtors or their estates and is a"disinterested person" as that term is defined in Section 101(14)of the Bankruptcy Code.

Headquartered in Jersey City, New Jersey, Best Manufacturing GroupLLC -- http://www.bestmfg.com/-- and its subsidiaries manufacture and distribute textiles, career apparel and other products for thehospitality, healthcare and textile rental industries. TheCompany and four of its subsidiaries filed for chapter 11protection on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415).Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &Leonard, P.A., represent the Debtors. Scott L. Hazan, Esq., atOtterbourg, Steindler, Houston & Rosen, will represent theOfficial Committee of Unsecured Creditors. When the Debtors filedfor protection from their creditors, they estimated assets anddebts of more than $100 million.

BEST MANUFACTURING: Court Approves Ravin Greenberg as Co-Counsel----------------------------------------------------------------The U.S. Bankruptcy Court for the District of New Jersey hasallowed the Official Committee of the Unsecured Creditorsappointed in Best Manufacturing Group LLC and its debtor-affiliates' chapter 11 cases, to retain Ravin Greenberg PC as itsbankruptcy co-counsel.

Ravin Greenberg is expected to:

a) attend all necessary court appearances;

b) research, prepare and draft pleadings and other legal documents, hearing preparation and related work; and

c) negotiate and advice the Committee with respect to the Debtors' chapter 11 proceedings.

Mr. Ravin assured the Court that his firm is a "disinterestedperson" as that term is defined in Section 101(14) of theBankruptcy Code.

Headquartered in Jersey City, New Jersey, Best Manufacturing GroupLLC -- http://www.bestmfg.com/-- and its subsidiaries manufacture and distribute textiles, career apparel and other products for thehospitality, healthcare and textile rental industries. TheCompany and four of its subsidiaries filed for chapter 11protection on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415).Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &Leonard, P.A., represent the Debtors. Scott L. Hazan, Esq., atOtterbourg, Steindler, Houston & Rosen, represent the OfficialCommittee of Unsecured Creditors. When the Debtors filed forprotection from their creditors, they estimated assets and debtsof more than $100 million.

BORALEX INVESTMENT: S&P Rates Planned $80M Sec. Term Loan B at B+-----------------------------------------------------------------Standard & Poor's Ratings Services assigned its preliminary 'B+'rating and a '4' recovery rating to Boralex Investment L.P.'sproposed $80 million secured term loan B due on the seventhanniversary of closing in 2013.

"The rating reflects the exposure of the merchant power project'sfinancial performance to numerous risks," said Standard & Poor'scredit analyst David Bodek.

These risks include:

-- The project's high fixed and variable costs that represent a vulnerability for a revenue stream that is highly dependent on competitive merchant electric markets;

-- A history of volatile operational performance that raises concerns about the strength of future financial results;

-- The electric generation fleet's exposure to variability in the price and availability of biomass fuel, variations in hydrological conditions, and transmission constraints;

-- Management's expectation that renewable energy credit revenues will escalate in short order from less than 9% of 2005's operating revenues to between 12% and 19% of operating revenues during the loan's term.

This growth could be frustrated by volatility within the renewableenergy credit markets and Boralex's need to make capitalimprovements for additional facilities to qualify for renewableenergy credit revenues.

However, credit concerns related to the capital improvements aretempered by the plan to use some of the loan's proceeds to fundthe improvements; and Refinancing risk that may be present atmaturity if the generation portfolio fails to yield cash flow thatcan meaningfully reduce loan balances that could range from 100%amortization under the base case to a 50% amortization underStandard & Poor's price assumptions. However, the amount ofamortization under the Standard & Poor's price assumptions couldbe greater if unexpended monies are available in the operating anddebt-service reserves to be applied to debt reduction.

Credit risks are tempered by these lender protections:

-- The projects do not face construction risk and have produced electricity for numerous years;

-- In addition, lenders benefit from structural protections that include:

* A trustee's custody of project monies;

* A requirement that 85% of available monies remaining following the payment of interest and a mandatory 1% annual amortization of the loan be used to repay principal;

* A cash trap that precludes distributions if post-cash-sweep debt service coverage is not at least 1.2x;

* The presence of a $5 million operating reserve to be funded from proceeds of the loan; and

* The presence of a debt service reserve account that must be maintained at a level equivalent to the succeeding 12 months' debt service, which is stronger than the typical account that is sized at six months' debt service for most other projects.

BORGER ENERGY: Moody's Holds Ba3 Rating on Senior Secured Debt--------------------------------------------------------------Moody's Investors Service affirmed Borger Energy Associates,L.P.'s 7.26% first mortgage bonds due 2022 at Ba3 following theannouncement by Quixx Corporation that it has reached a definitiveagreement for the sale of its interests in Borger to affiliates ofEnergy Investors Funds.

The rating outlook is stable.

Quixx Corporation, a subsidiary of Xcel Energy, Inc. has enteredinto a definitive agreement for the sale of its .45% generalpartnership and 43.4256% limited partnership interests in Borgerto EIF-Borger LLC and EIF-Borger Holdings, LLC, both of which areexisting partnership interests held by United States Power Fund,L.P., a private equity fund managed by EIF.

Following completion of the transaction, 100% of the partnershipinterests of Borger will be held directly or indirectly by fundsmanaged by EIF. The project operator, Quixx Power Services, willalso be transferred to affiliates of EIF; it is anticipated thatexisting operational personnel will remain in place.

Although the sale of the partnership interests concentrates theownership of the project with funds managed by EIF, ownership willbe maintained through two separate funds, United States Power FundL.P. and Project Finance Fund III, L.P., and the voting provisionsof the partnership agreement will remain unchanged.

Borger's Ba3 senior secured rating is driven by the project'soperating and financial performance, which in 2004 and 2005suffered from significant unscheduled outages and reduced steamsales. In 2006, generating performance has returned to morenormal standards; however, steam sales remain depressed and cashflow coverage of debt service remains weak at approximately 1.13x.There is potential for improved financial performance in 2007,although improvement is largely dependent on increased steamsales, the timing and amount of which remains somewhat uncertain.

The transaction is subject to various consents and notificationsand is anticipated to close by year-end.

Borger Energy Associates, L.P. is a 225-megawatt gas-firedcogeneration facility located near Borger, Texas. Power generatedby the project is sold to Southwestern Public Service Company andsteam is sold to ConocoPhillips Company.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

CARMIKE CINEMAS: Paying Quarterly Cash Dividend on November 22--------------------------------------------------------------The Board of Directors of Carmike Cinemas Inc. has declared aquarterly dividend payable for the third quarter of 2006.

The amount of the dividend will be $0.35 per share. This amountincludes Carmike's customary quarterly dividend of $0.175 pershare, for the third quarter of 2006, as well as an additional$0.175 per share that normally would have been declared for thesecond quarter. The additional $0.175 per share dividend isconsistent with Carmike's previously disclosed expectation todeclare a quarterly dividend following resolution of Carmike'slease accounting review, restatement, and credit facilityamendment process. The dividend of $0.35 per share is payable onNov. 3, 2006, to all stockholders of record as of the close ofbusiness on Oct. 16, 2006.

Headquartered in Columbus, Georgia, Carmike Cinemas, Inc. (NASDAQ:CKEC) -- http://www.carmike.com/-- is a motion picture exhibitor in the United States with 301 theatres and 2,475 screens in 37states, as of Dec. 31, 2005. Carmike's focus for its theatrelocations is small to mid-sized communities with populations offewer than 100,000.

* * *

As reported in the Troubled Company Reporter on Oct. 13, 2006,Moody's Investors Service revised its Corporate Family Rating forCarmike Cinemas to B3 from B2 in connection with Moody's InvestorsService's implementation of its new Probability-of-Default andLoss-Given-Default rating methodology for the gaming, lodging andleisure sectors.

The Company further stated that there could be no assurance thatthis process will result in any specific transaction. The Companydoes not intend to comment further publicly with respect to theexploration of strategic alternatives unless a specifictransaction is approved by its Board.

The Company will release its third quarter 2006 financial resultstoday, Monday, Oct. 30, 2006, at approximately 7:00 a.m. EasternTime.

San Antonio, Tex.-based Clear Channel Communications, Inc.(NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home"entertainment and information services for local communities andpremiere opportunities for advertisers. The company's businessesinclude radio, television and outdoor displays.

CLEAR CHANNEL: Company Evaluation Cues Moody's to Review Ratings----------------------------------------------------------------Moody's Investors Service placed the ratings for Clear ChannelCommunications, Inc. and its subsidiaries on review for possibledowngrade following the company's announcement that its Board ofDirectors is evaluating various strategic alternatives to enhanceshareholder value.

Moody's believes that the recent announcement creates uncertaintyaround the company's business strategy and business portfolio mix,capital structure and credit metrics. Moody's review will focuson the nature of the specific transaction, if any, and theresulting impact on the company's capitalization (includingstructural subordination issues) and credit metrics. Moody's willalso evaluate Clear Channel's business strategy in the context ofthe current softness in radio advertising and competitive threatsfacing the mature radio business, including emerging satellite andcross media competition.

Clear Channel Communications, Inc. with its headquarters in SanAntonio, Texas, is a global media and entertainment companyspecializing in "gone from home" entertainment and informationservices for local communities and premiere opportunities foradvertisers. The company's businesses include radio, outdoordisplays, and television stations.

Net loss on a GAAP basis for the third quarter was $42.1 million,compared to GAAP net loss of $19.6 million for the same periodlast year. Included in GAAP net loss for the quarter are chargesof $82 million associated with previously announced restructuringplans . For the same period in 2005, restructuring charges of$41 million were incurred.

Adjusted net earnings for the quarter were $40.5 million, comparedto $27.1 million for the same period last year . Adjusted netearnings is defined as net earnings before amortization ofintangible assets, gains or losses on the repurchase of shares anddebt, integration costs related to acquisitions, option expense,option exchange costs and other charges, net of tax andsignificant deferred tax write-offs. These results compare withthe company's guidance for the third quarter, announced on July27, 2006, of revenue of $2.15 to $2.35 billion.

For the nine months ended Sept. 30, 2006, revenue was $6,550million compared to $6,396 million for the same period in 2005.Net loss on a GAAP basis was $89.8 million compared to net loss of$18.6 million for the same period last year. Adjusted netearnings for the first nine months of 2006 were $87 millioncompared to adjusted net earnings of $100.2 million for the sameperiod in 2005.

"Revenues were very strong sequentially and year over year drivenprimarily by the growth realized in our consumer segment. Othersegments were solid as well in this seasonally lower quarter,"said Steve Delaney, CEO, Celestica. "I'm pleased with the addeddiversification and the improvement in operating margins, despitethe setbacks we've had in the performance of some of ourfacilities in the Americas and Eastern Europe. We remain focusedon overcoming these challenges and accelerating the improvement inour returns on capital."

For the fourth quarter ending Dec. 31, 2006, the companyanticipates revenue to be in the range of $2.25 billion to$2.45 billion.

At the same time, Standard & Poor's raised the ratings on thecompany's bank loan to 'BB' from 'BB-' and affirmed the recoveryrating of '1', which indicates expectations of full recovery ofprincipal in the event of a payment default. The outlook isstable.

"The upgrade also reflects our expectation that strong conditions,despite additional announced structural capacity, should last atleast over the intermediate term.

"In addition, the upgrade reflects the company's stated goal ofmaintaining a conservative balance sheet while prudently using itssubstantial cash balances to improve its businesses, rewardshareholders, and make bolt-on acquisitions."

Chaparral operates two mills and is the second-largest structuralsteel producer in the U.S.

"Over the intermediate term, we expect the industry and company tocontinue to benefit from production discipline among domesticparticipants," Ms. Shmaruk said.

"We could revise the outlook to negative should marketfundamentals meaningfully deteriorate, although at present thelikelihood is remote, or if the company increases its debt levelsto fund growth and shareholder initiatives.

"Conversely, we could revise the outlook to positive or raise theratings on Chaparral if the company improves and diversifies itsproduct offerings--while maintaining a consistently conservativefinancial profile and strong liquidity--and reduces its debtlevels."

CIGNA CORP: Board Declares $0.025 Cents Per Share Cash Dividend---------------------------------------------------------------The board of directors of CIGNA Corporation declared a quarterlycash dividend of $0.025 cents per common share, payable onJan. 8, 2007 to shareholders of record as of Dec. 11, 2006.

The Company disclosed that its Board also:

-- Set Feb. 27, 2007, as the record date for shareholders entitled to vote at the Company's annual meeting of shareholders, to be held at the Philadelphia Museum of Art at 3:30 p.m. on April 25, 2007.

-- Voted to adopt a majority vote standard in uncontested elections of directors, effective immediately and will apply to all future elections of directors. Under the new standard, each director will be elected if the number of votes cast "for" the director exceeds the number of votes cast "against" the director. Any director who fails to receive the required vote for election must tender his or her resignation.

-- Increased the Company's stock repurchase authority by $500 million. With the new authority, the Company has approximately $820 million of repurchase authority remaining.

-- Announced plans to voluntarily withdraw its common stock, par value $0.25, from listings on the Philadelphia Stock Exchange and NYSE Arca, Inc. The Company's common stock will continue to be listed on the New York Stock Exchange.

Headquartered in Philadelphia, CIGNA Corporation (NYSE: CI)-- http://www.cigna.com-- and its subsidiaries are publicly owned providers of health care, disability, life and accident insurancebenefits in the United States and selected markets around theworld.

The 'AAA' rating on the senior certificates reflects the 4.65%subordination provided by the 2.20% class B-1, the 0.85% class B-2, the 0.55% class B-3, the 0.45% privately offered class B-4, the0.30% privately offered class B-5, and the 0.30% privately offeredclass B-6. In addition, the ratings reflect the quality of themortgage collateral, strength of the legal and financialstructures, and CitiMortgage, Inc.'s servicing capabilities (rated'RPS1' by Fitch) as primary servicer.

As of the cut-off date, Oct. 1, 2006, the mortgage pool consistsof 1,764 conventional, fully amortizing, 12-30 year fixed-ratemortgage loans secured by first liens on one- to four-familyresidential properties with an aggregate principal balance ofapproximately $597,989,011, located primarily in California(33.71%), Florida (9.04%) and New York (7.24%). The weightedaverage current loan to value ratio of the mortgage loans is70.69%. Approximately 65.26% of the loans were originated under areduced documentation program. Condo and co-op properties accountfor 8.43% of the total pool. Cash-out refinance loans andinvestor properties represent 40.21% and 5.53% of the pool,respectively. The average balance of the mortgage loans in thepool is approximately $338,996. The weighted average coupon ofthe loans is 6.823% and the weighted average remaining term is 353months.

The mortgage loans were originated or acquired by CMI and in turnsold to CMSI. A special purpose corporation, CMSI, deposited theloans into the trust, which then issued the certificates. U.S.Bank National Association will serve as trustee. For federalincome tax purposes, an election will be made to treat the trustfund as one or more real estate mortgage investment conduits.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

CKE Restaurants Inc., through its wholly owned subsidiaries,engages in the ownership, operation, and franchising of quick-service and fast-casual restaurants. The company operates itsrestaurants primarily under Carl's Jr., Hardee's, La Salsa FreshMexican Grill, and Green Burrito brand names. As of Jan. 31,2006, the company operated or franchised approximately 3,160restaurants in 43 states and 13 countries. The company wasfounded in 1941 and is headquartered in Carpinteria, California.

COMPLETE RETREATS: Files DIP Loan Budget at Ad Hoc Panel's Request------------------------------------------------------------------In connection with Complete Retreats LLC and its debtor-affiliates' proposed $80,000,000 debtor-in-possession financingfacility from Ableco Finance, LLC, the Debtors filed with the U.S.Bankruptcy Court for the District of Connecticut a 13-week cashflow forecast ending Jan. 19, 2007, and a six-month budget for theperiod October 2006 to March 2007.

The Debtors previously filed with the Court a draft of itsproposed Replacement DIP Financing, a full-text copy of which isavailable for free at: http://researcharchives.com/t/s?1403

According to the Debtors, the Ableco DIP Financing Facility Draftis subject to continuing negotiations among the parties and tofurther revision.

The Debtors filed the Ableco Financing Budget following the Ad HocCommittee of Members of Complete Retreats' demand.

The Ad Hoc Committee is a group comprised of more than 350 currentand former members of Private Retreats, LLC, and DistinctiveRetreats, LLC, who share common interests in the Debtors'bankruptcy cases and who represent at least $115,000,000 inclaims.

COMPLETE RETREATS: Panel Wants Dec. 2 Claims Investigation Period-----------------------------------------------------------------The Official Committee of Unsecured Creditors in Complete RetreatsLLC and its debtor-affiliates' chapter 11 cases further asks theU.S. Bankruptcy Court for the District of Connecticut to extendthe time for it to investigate and bring claims relating to theprepetition liens and conduct of the Debtors' prepetition lendersthrough and including Dec. 2, 2006.

The Creditors Committee previously obtained an Oct. 26, 2006deadline to file its objections to the Debtors' loan agreementswith The Patriot Group LLC and LPP Mortgage Ltd.

The Committee has uncovered allegations of wrongdoing associatedwith the Debtors' prepetition financing, according to Jonathan B.Alter, Esq., at Bingham McCutchen LLP, in Hartford, Connecticut.

Mr. Alter explains that the investigation of the Lenders must runin tandem with the broader investigation of the extent of anywrongdoing related to the Debtors' prepetition management andoperations, which have just commenced and will take additionaltime to complete.

In furtherance of its investigation, the Committee has madeinformal requests for information to, and has received documentsfrom, the DIP Lenders, Mr. Alter informs the Court. TheCommittee has also obtained the Court's permission to conductexaminations pursuant to Rule 2004 of the Federal Rules ofBankruptcy Procedure on John Howe, a former officer of ThePatriot Group, LLC, and various former officers and employees ofthe Debtors.

DIP Lenders Object

Patriot Group and LPP Mortgage assert that the Creditors Committeehas not shown that cause exists to support a further extension ofthe Objection Period. Moreover, the Creditors Committee's requestis contrary to the terms of the Final DIP Order and prejudicial tothe Lenders and other creditors, the Lenders add.

The current DIP Facility is due on Oct. 31, 2006. The Lendersassert that if the Debtors do not pay them in full by October 31,they have the right under the DIP Final Order to foreclose ontheir collateral.

The Lenders relate that they have voluntarily produced documentsrequested by the Committee and have fully cooperated with thediscovery request. The Committee has reviewed all of their loanand related documentation and has made no allegations that theExisting Loans are unsecured, undersecured or are not properlyperfected.

Patriot notes that the timing of the Committee's discoveryrequest seems tied not to any legitimate need for investigation,but rather to an effort to manufacture a justification for afurther Extension, defer repayment of the Existing Loans, andcreate an additional $7,000,000 in liquidity for the Debtorsthrough a priming lien that directly contravenes the provisionsof the Final DIP Order.

The Debtors' cases cannot withstand the costs of a prolongedinvestigation of the Lenders' claims, combined with the continuedcost of interest, costs and fees accruing on any remaining unpaidbalance on their loans, the Lenders argue.

Accordingly, the Lenders ask the Court to:

(a) deny the Committee's request; or

(b) grant an extension without prejudice to the Lenders' right to receive full payment of the Existing Loans by October 31, 2006, pursuant to the Ableco DIP Facility.

COMPLETE RETREATS: Court Approves Holly Felder Etlin as CRO------------------------------------------------------------The U.S. Bankruptcy Court for the District of Connecticut gaveComplete Retreats LLC and its debtor-affiliates authority toemploy Holly Felder Etlin as their chief restructuring officer,provided that the Debtors' indemnification obligations will belimited to the similar obligations provided by the Debtors to theofficers and directors under the Debtors' corporate documents,available insurance and applicable state law.

Without imposing a requirement on XRoads Solution Group, LLC, tosubmit fee applications pursuant to Sections 330 and 331 of theBankruptcy Code, the Court rules that XRoads will invoice theDebtors on a monthly basis and provide copies of the invoices tothe U.S. Trustee and the Official Committee of UnsecuredCreditors by the 20th day of each month for the previous month.

Approximately every 120 days, XRoads will file with the Court andserve on the U.S. Trustee and the Committee quarterly reports ofcompensation earned and expenses incurred. The U.S. Trustee andthe Committee will have the right to object to the QuarterlyCompensation Reports within 10 days of the filing.

As reported in the Troubled Company Reporter on Oct 5, 2006, theDebtors sought to employ Holly Felder with a financial advisoryservices support team from XRoads Solutions.

The Debtors believe that Ms. Etlin is a qualified restructuringconsultant with valuable experience in numerous corporateturnarounds, financial reorganizations, and asset sales.

The Debtors previously filed an application under Section 327(a)of the Bankruptcy Code to employ XRoads Solutions as theirfinancial and restructuring advisor. On July 25, 2006, the Courtapproved the Debtors' request, on an interim basis.

After multiple communications among the Debtors' counsel, XRoadsand the U.S. Trustee, the Debtors have elected to voluntarilywithdraw the XRoads Retention Application.

Pursuant to the terms of a Retention Letter between XRoads andthe Debtors dated July 1, 2006, and amended on July 20, 2006, Ms.Etlin, as the Debtors' CRO, is authorized and responsible for:

-- making decisions with respect to all aspects of the management and operation of the Debtors' business and assisting in identifying cost reduction, working capital turn, and other operations improvement opportunities;

-- communicating and meeting with creditors and their representatives in connection with the formulation, negotiation, and execution of a plan of reorganization, and discussing the business operations, financial performance, and general condition of the Debtors; and

-- making decisions with respect to hiring new employees and terminating the Debtors' existing employees.

(h) assist in communications, negotiations with, and presentations to vendors, creditors, and other key constituents;

(i) assist in the development of employee-related plans, including retention, severance, and replacement plans;

(j) assume the leadership role for the design and implementation of new effective management and financial reporting methodologies;

(k) analyze and lead the Debtors' cash management and related activities; and

(1) assist in the preparation of the Debtors' Schedules of Assets and Liabilities, Statements of Financial Affairs, the initial reporting package for the United States Trustee, and monthly operating reports.

The CRO and any other additional personnel would report to andoperate under the direction of the Debtors' board, which mayterminate the engagement upon 15 days' written notice.

The Debtors' current board of directors consists of JamesMitchell, Michael Shelton and Jason Bitsky. None of thepersonnel employed by XRoads to represent the Debtors, includingthe CRO, would serve as a director of the Debtors.

In addition, XRoads agrees that neither it nor any of itsaffiliates would make any investment in the Debtors or thereorganized Debtors for three years after the conclusion of itsengagement with the Debtors.

The Debtors will pay XRoads a fixed fee of $150,000 per month forthe CRO and Financial Advisory Services; provided, that if thoseservices total more than 480 hours in any month, the Debtors willpay XRoads $375 per hour for the additional services.

The Debtors will pay all expenses reasonably incurred by XRoadsfor services rendered on the Debtors' behalf. The CRO and otheradditional XRoads personnel will be covered by the Debtors'directors and officers insurance liability policy.

If any Restructuring is consummated during the term of XRoads'engagement and 12 months after the termination of its services,XRoads will receive a Restructuring Performance Fee equal to:

(i) 0.5% of the first $100,000,000 of the Debtors' debt securities and other indebtedness, obligations, or liabilities restructured; and

(ii) 0.25% of all amounts in excess of $100,000,000 of the Debtors' cumulative debt securities and other indebtedness, obligations, or liabilities restructured.

If a Sale Transaction is consummated during the term of XRoads'engagement or within 12 months after the termination of itsservices, XRoads will receive a Sale Performance Fee equal to:

(i) 0.5% of the first $100,000,000 of Aggregate Gross Considerations paid; and

(ii) 0.25% of the Aggregate Gross Consideration paid in excess of $100,000,000.

The Restructuring Performance Fee and the Sales Performance Fee,if earned, would be subject to the Court's approval.

Prior to the Debtors' bankruptcy filing, XRoads received a$150,000 retainer. The Retainer will be applied to XRoads' finalbill for fees and expenses, Jeffrey K. Daman, Esq., at DechertLLP, in Hartford, Connecticut, informed the Court. The unusedportion of the Retainer, if any, will be returned to the Debtors.

The Debtors have been advised by XRoads that it will endeavor tocoordinate with the other retentions in the Debtors' bankruptcycases to eliminate unnecessary duplication or overlap of work.

"The assistance of Ms. Etlin and her team will provide a freshperspective on the Debtors' business, as well as valuableexpertise on various business management and operational issues,"Mr. Daman explained. "With the aid of XRoads, the Debtors will bebetter able to assess possible areas of cost reduction and otheroperational improvement opportunities, as well as successfullynavigate through the critical early stage of these cases andbeyond."

Because the CRO is not to be retained under Section 327, XRoadsshould not be subject to the compensation requirements ofSections 328, 330 and 331 of the Bankruptcy Code, Mr. Damancontended.

Thus, the Debtors ask the Court to:

-- treat XRoads' fees and expenses as an administrative expense of the Debtors' estates; and

-- exempt XRoads from filing fee applications or seeking Court approval for the payment of its services and reimbursement of its expenses.

Ms. Etlin, as principal of XRoads Solutions Group, LLC, assuredthe Court that XRoads is a "disinterested" person as that term isdefined in Section 101(14) of the Bankruptcy Code. XRoads doesnot hold or represent an interest adverse to the Debtors or theirestates.

The Debtor's principals say the immediate change in managementwill improve operational performance and maximize the chances ofreorganizing the Debtor as a going concern.

The Debtor will pay Mr. Brincko $75,000 per month. It will payMs. Thoroddsen $50,000 per month. The employment of the newofficer will result in cost savings over the former employments ofMr. Soosman, Mr. Allen and Clear Thinking Group -- the Debtor'sfinancial advisor.

To the Debtor's best knowledge, Mr. Brincko and Ms. Thoroddsen donot hold any interest adverse to the Debtor's estate.

COUDERT BROTHERS: Gets Okay to Hire Dunn Koes as Special Counsel----------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkallowed Coudert Brothers LLP to employ Dunn Koes LLP as itsspecial counsel, nunc pro tunc to Sept. 22, 2006.

As reported in the Troubled Company Reporter on Oct. 4, 2006, DunnKoes will continue representation of the Debtor in an appeal to amalpractice jury verdict and judgment entered in the matter ofLyman Gardens Apartments, LLC, et al., v. Coudert Brothers LLP, etal.

Lyman Gardens Apartments, LLC and Darryl Wong commenced an actionin the Superior Court of California for the County of Los Angeles,Case No. BC299990, against Debtor and Ralph Navarro, a partner ofthe Debtor, asserting certain causes of action for professionalnegligence/attorney malpractice fraud, breach of fiduciary duty,legal malpractice, fraudulent concealment, and negligence arisingfrom a real estate transaction for which the Lyman GardensPlaintiffs engaged the services of the Debtor.

In June 2006, a jury awarded the Lyman Gardens Plaintiffsapproximately $2.5 million in compensatory and punitive damagesagainst the Debtor. The Debtor's appeal on the Lyman Gardensjudgment is currently pending and has not yet been perfected.

COUDERT BROTHERS: Wants to Hire Yeo Wee as Special Counsel----------------------------------------------------------Coudert Brothers LLP asks the U.S. Bankruptcy Court for theSouthern District of New York for authority to employ Yeo WeeKiong Law Corporation as its special counsel, nunc pro tunc toSept. 22, 2006.

Yeo Wee will continue to represent the Debtor in litigationmatters pending in Singapore. The firm has worked in a suitinvolving Oliver Langton Wright and Dan Marjonovic, the Debtor'sformer partners, who have asserted claims against the Debtor inSingapore.

DAIMLERCHRYSLER AG: Rules Out Sale of Chrysler Unit---------------------------------------------------DaimlerChrysler AG is not planning to sell its Chrysler divisionas the U.S.-German carmaker disclosed of an "aggressive" review ofthe unit, The Financial Times says.

Bodo Uebber, DaimlerChrysler's Finance Director, said the companywould review all options, including structural changes, to turnaround its U.S. unit. Mr. Uebber, however, ruled out a sale orpartnership for the Chrysler unit.

"DaimlerChrysler reaffirms its previous statements made to themedia that there are no plans to sell Chrysler Group," the companysaid in a statement. "The company appropriately chose not to addto the speculation regarding this topic. However, the resultingcoverage and comments made it clear that this 'not-for-sale'statement needed to be reaffirmed."

In the third quarter of 2006, Chrysler posted an operating loss of$1.477 billion, compared with an operating profit of $393 millionin the same period last year.

The operating loss, according to a statement by DaimlerChrysler,was primarily the result of a decrease in worldwide factory unitsales, an unfavorable shift in product and market mix, andnegative net pricing.

"These factors reflect a continuing difficult market environmentin the United States as the Chrysler Group faced increased dealerinventory levels from the prior quarter, a shift in consumerdemand toward smaller vehicles due to higher fuel prices, andincreased interest rates," DaimlerChrysler added.

The Chrysler Group segment offers cars and minivans, pick-uptrucks, sport utility vehicles, and vans under the Chrysler, Jeep,and Dodge brand names. It also sells parts and accessories underthe MOPAR brand.

The Chrysler Group is facing a difficult market environment in theUnited States with excess inventory, non-competitive legacy costsfor employees and retirees, continuing high fuel prices and astronger shift in demand toward smaller vehicles. At the sametime, key competitors have further increased margin and volumepressures - particularly on light trucks - by making significantprice concessions. In addition, increased interest rates causedhigher sales & marketing expenses.

In order to improve the earnings situation of the Chrysler Groupas quickly and comprehensively, measures to increase sales and cutcosts in the short term are being examined at all stages of thevalue chain, in addition to structural changes being reviewed aswell.

DANA CORP: Court Okays Pact for Entry Into Mitsubishi Master Lease------------------------------------------------------------------The U.S. Bankruptcy Court for the Southern District of New Yorkapproved a stipulation permitting Dana Corporation and its debtor-affiliates to enter into a master lease agreement with MitsubishiCaterpillar Forklift America.

Under the Stipulation, the parties agree that the Master Lease isa transaction in the ordinary course of the Debtors' business,pursuant to Section 363(c) of the Bankruptcy Code.

As of their bankruptcy filing, the Debtors were party toapproximately 1,000 active equipment lease schedules with eightdifferent lessors. The Debtors estimate that approximately 60% ofthose Schedules relate to forklift leases.

Accordingly, the Debtors believe that their entry into a newpostpetition master lease with Mitsubishi for the lease offorklifts to be used in their businesses is a transaction in theordinary course of business that does not require Court approval.

Mitsubishi, however, has expressed concern that any claims itmight have under the Master Lease might be subject to challengeon the basis that the Debtors' entry into the Master Lease wasnot an ordinary course of business transaction.

DANA CORP: Six Retirees Balk at Proposed Burns, et al. Fees-----------------------------------------------------------Six retirees filed separate letters with the U.S. Bankruptcy Courtfor the Southern District of New York on Oct. 16, 2006:

DANA CORP: American Materials Wants Return of Henderson Facility----------------------------------------------------------------American Materials Inc., and Dana Corporation and its debtor-affiliates are parties to a Warehouse Services Agreement, pursuantto which the Debtors leases up to 157,500 square feet of warehousespace at AMI's facility at Highway 426 and U.S. 41, in Henderson,Kentucky.

The Debtors use the Henderson Facility for non-residentialpurposes, Richard M. Meth, Esq., at Pitney Hardin, LLP, in NewYork, relates.

The Debtors are currently paying $0.22 per square foot everymonth for the Warehouse Lease. AMI also provides the Debtorswith basic services relating to the unloading, movement,inventory, loading and storage of the Debtors' goods.

AMI retains full ownership of the Henderson Facility, Mr. Methsays. The Debtors have no option to purchase the HendersonFacility or any other interest in the Facility. AMI isresponsible for any repairs and maintenance of the Facility andfor paying all utilities, taxes and other assessments. TheDebtors, on the other hand, are responsible for maintaininginsurance on the Goods they store at the Facility.

As of Oct. 3, 2006, the Debtors had neither filed a motion for,nor obtained an order approving, the assumption of the WarehouseLease, Mr. Meth relates. Oct. 3, 2006 is the deadline for theDebtors to decide on non-residential real property leases.

Because the Debtors have failed to assume the Warehouse Leasebefore the October 3 deadline, it is deemed rejected by operationof law and thus, AMI is entitled to the immediate surrender andpossession of the Henderson Facility, Mr. Meth asserts.

As of Oct. 5, 2006, the Debtors owe AMI $155,661 for unpaidpostpetition amounts under the Warehouse Lease, including latefees, Mr. Meth relates. Pursuant to both Sections 363(d)(3) and503(b)(1), AMI is entitled to an award of an administrativeexpense and the immediate payment of that amount by the Debtors,Mr. Meth maintains.

Accordingly, AMI asks the U.S. Bankruptcy Court for the SouthernDistrict of New York to:

(a) direct the Debtors to immediately surrender the property subject under the Warehouse Lease;

(b) award it an administrative expense claim for not less than $155,661; and

DOV PHARMACEUTICAL: Receives Delisting Notice from NASDAQ--------------------------------------------------------- DOV Pharmaceutical, Inc. has received notification that the NASDAQListing Qualifications Panel has determined to delist theCompany's securities, effective at the open of business onOct. 27, 2006. The delisting is a result of the Company's failureto meet the minimum market value of listed securities requirementfor continued listing.

The Company has been advised that its securities are immediatelyeligible for quotation on the Pink Sheets, an electronic quotationservice for securities traded over-the-counter, effective with theopen of business on Oct. 27, 2006. The Company's common stockmay, in the future, also be quoted on the Over-the-CounterBulletin Board maintained by the NASD, provided that a marketmaker in the common stock files the appropriate application with,and such application is cleared by, the NASD. The Companyanticipates disclosing further trading venue information for itscommon stock once such information becomes available.

The delisting of the Company's common stock represents a"fundamental change" under the indenture governing the Company's2.50% convertible subordinated debentures due 2025. As a result,the Company is obligated to offer to repurchase the debentures.The Company must make this offer to repurchase the debentures onor prior to November 11, 2006. The Company is obligated todesignate a repurchase date for the debentures that is not lessthan twenty, nor more than thirty-five, business days followingthe date of the Company's offer to repurchase. Holders of thedebentures will have the option, but not the obligation, torequire the Company to repurchase their debentures at 100% of theprincipal amount of the debentures, plus any accrued and unpaidinterest. There are currently $70 million in aggregate principalamount of debentures outstanding. The Company cannot predict thenumber of holders of debentures that will exercise their option torequire the Company to repurchase their debentures. The Companydoes not presently have the capital necessary to repurchase all$70 million of the debentures if all holders of debenturesexercise their option to require the Company to repurchase thedebentures.

The Company will continue to explore a variety of initiatives toaddress its current capital structure issues and improve itsliquidity position. The Company intends to initiate discussionswith its major stakeholders regarding the Company's strategicalternatives, including potentially a consensual restructuring ofits capital structure. As with any negotiations, no assurance canbe given as to when and if the Company will succeed in concludingany such agreement with its stakeholders. If the Company isunable to raise sufficient funds to repurchase the requisiteamount of debentures or restructure its obligations under thedebentures, it may be forced to seek protection under the UnitedStates bankruptcy laws.

The Company has retained Houlihan Lokey Howard & Zukin Capital,Inc. to serve as its financial advisor to assist with itsevaluation of strategic alternatives and restructuring effortswith respect to the debentures.

The Company believes that its current cash-on-hand is adequate tomeet the day-to-day obligations of the business during therestructuring process and its operations should not be affected bythe delisting and restructuring process. The Company willcontinue to focus its internal efforts on its Phase I and IIclinical and preclinical research programs for the development anddiscovery of drugs to treat neuropsychiatric disorders and advancethe Company's later-stage drug development programs throughexternal partnerships and collaborations.

About DOV Pharmaceutical

DOV Pharmaceutical Inc. is a biopharmaceutical company focused onthe discovery, acquisition and development of novel drugcandidates for central nervous system disorders. The Company'sproduct candidates address some of the largest pharmaceuticalmarkets in the world including depression, pain and insomnia.

EL POLLO: IPO Withdrawal Cues Moody's to Slice CFR to B3 from B1----------------------------------------------------------------Moody's Investors Service moved El Pollo Loco, Inc.'s corporatefamily rating back to B3 from B1 following the company's recentannouncement to withdraw its proposed $135 million initial publicoffering. At the same time, the B1 ratings on the proposed$210 million senior secured credit facility consisting of a$25 million revolver and a $185 million term loan B werewithdrawn.

The existing capital structure ratings, namely the Ba3$25 million revolver, the Ba3 $104.5 million term loan B and theCaa1 senior unsecured notes, as well as the SGL-2 SpeculativeGrade Liquidity rating were all affirmed along with this ratingaction.

The rating outlook remains stable.

Moody's previous rating action on El Pollo was May 18, 2006 whenthe corporate family rating was upgraded to B1 from B3 and B1ratings were assigned to the company's proposed $210 millionsenior secured credit facility (consisting of a $25 millionrevolver and a $185 million term loan B) following the company's$135 million proposed IPO of shares of its common stock andplanned refinancing of its existing debt. The SGL-2 SpeculativeGrade Liquidity rating was affirmed at that time.

Ratings downgraded with a stable outlook:

-- Corporate family rating to B3 from B1, -- Probability of default rating to B3 from B2.

Assessment changed:

-- LGD4-50% from LGD3-35% loss given default assessment.

Ratings withdrawn:

-- B1 (LGD3, 31%) for the $185 million senior secured term loan B maturing in 2013,

ENTERGY NEW: Court Denies Claims Objection & Class Classification----------------------------------------------------------------- On April 18, 2006, the Gordon and Lowenburg Plaintiffs each fileda class proof of claim in Entergy New Orleans, Inc.'s Chapter 11case in relation their motion for certification of classes. ThePlaintiffs filed their claims a day before the April 19, 2006claim bar date.

On May 11, 2006, ENOI filed objections to both the Plaintiffs'Claim Nos. 326 and 328 on the basis that it is not possible fromthe face of the claims to determine how the claims werecalculated. The Claims are disputed and unliquidated. ENOI alsofiled a motion for summary judgment, asking the U.S. BankruptcyCourt for the Eastern District of Louisiana to deny thePlaintiff's motion and disallow both of the Claims.

Court Denies Claims Objection

The Bankruptcy Court, however, holds that the documentation filedwith the claims detailing the administrative and judicial remediessought by the Plaintiffs in other fora outside the Court issufficient documentation of the proof of claim as of now. TheCourt notes that properly filing a proof of claim constitutesprima facie evidence of the claim's validity.

Therefore, the Court overrules ENOI's objection to Claim Nos. 326and 328 because it provided no evidence to overcome the primafacie effect of the claims.

Court Declines Class Certification

Judge Jerry A. Brown relies on certain Circuit Court of Appealopinions on how class certification and class proofs of claimshould properly be addressed.

Judge Brown notes the minority view espoused by the Tenth Circuitholds, "Class action procedures can be employed in a bankruptcyproceeding only to consolidate claims that have already beenproperly filed." In In re Standard Metals Corp., 817 F.2d 625,632 (10th Cir. 1987), the court held that "a proof of claim filedby an investor for himself and on behalf of all other bondholdersas a class was not allowed because the Bankruptcy Code does notpermit filing a claim on behalf of a class."

Although it did not allow the class proof of claim to be filed, onrehearing, the Tenth Circuit issued in 11 Sheftelman v. StandardMetals Corp., 839 F.2d 1383 (10th Cir. 1987), a per curiam opinionreversing the prior Standard Metals opinion and the orders of thebankruptcy court to the extent that the bankruptcy court did notrequire the debtor to give actual notice to the bondholders anddid not set a new bar date for the filing of claims by thosebondholders.

Therefore, although the class proof of claim was not allowed inthe Standard Metals case, the Tenth Circuit required the debtor toprovide the putative class members with actual notice of thebankruptcy and the bar date and extend the bar date so thatindividual proofs of claim could be filed, Judge Brown notes.

The Bankruptcy Court also notes that in contrast to the TenthCircuit's opinion that class proofs of claim are impermissible,the Seventh Circuit opinion allows a class representative to filea proof of claim. In In re American Reserve Corp., 840 F.2d 487(7th Cir. 1988), the Seventh Circuit ruled that the filing by arepresentative of a class proof of claim was clearly contemplatedby Rule 7023 of the Federal Rule of Bankruptcy Procedure, whichcould be made applicable to contested matters by Rule 9014, andthat it was within the bankruptcy judge's discretion to applyRule 7023 and allow a class proof of claim.

The Seventh Circuit also stated, "Rule 9014 thus allows bankruptcyjudges to apply Rule 7023-and thereby Federal Rule Civil Procedure23, the class action rule-to 'any stage' in contested matters.Filing a proof of claim is a 'stage'. All disputes in bankruptcyare either adversary proceedings or contested matters, so Rule 23may apply throughout a bankruptcy case at the bankruptcy judge'sdiscretion."

The Bankruptcy Court notes that ENOI is regulated by the CityCouncil for the City of New Orleans under Article IV, Section21(c) of the Constitution of the State of Louisiana and the HomeRule Charter of the City of New Orleans. Under the LouisianaConstitution, the Louisiana Public Service Commission regulatesmost of the public utilities in the state of Louisiana, but someutilities that were municipally regulated as of the effective dateof the Constitution continue to be regulated by themunicipalities, which includes New Orleans.

According to Judge Brown, with respect to their duties asregulators of public utilities, the City Council and the LPSCperform approximately the same function, and that for purposes ofits jurisdictional analysis, the cases decided by Louisiana statecourts with respect to the jurisdictional powers of the LPSC canalso be applied to the jurisdiction of the City Council.

Therefore, the Bankruptcy Court finds that the prescribed channelsfor adjudication of rate related complaints against ENOI areapparently working as they should, which is why it is not in favorinvoking Rule 7023 in the proceeding between the Gordon andLowenburg Plaintiffs and ENOI.

The Bankruptcy Court acknowledges ENOI's objection to anyreopening of the bar date to allow individual claims to be filed,arguing that doing so would disrupt the formation of a plan ofreorganization, and the high costs associated in mailing noticesand proof of claim forms to 180,000 potential class members.

However, the Bankruptcy Court takes note of the agreement byENOI, its parent, Entergy, Inc., and the Official Committee ofUnsecured Creditors that they would not object to the proofs ofclaim of the Gordon and Lowenburg Plaintiffs on the basis that anon-certified class representative will file a proof of claim onbehalf of a subsequently certified class.

Therefore, the Bankruptcy Court declines to apply Rule 7023 to thecontested matter and will not certify either the Gordon Plaintiffsor the Lowenburg Plaintiffs as a class.

The Court, however, will allow the Plaintiffs to make a motion toapply Rule 7023 to any claim objection filed by the Debtor in theevent that either class is certified by a court that is hearingthe actions for class certification.

Court Extends Time to Appeal

ENOI sought and obtained the Court's authority to file untilNov. 13, 2006, the time to file a notice of appeal or to file amotion for reconsideration of the Court's opinion and order datedOct. 13, 2006.

The Oct. 13, 2006 order granted in part and denied in part ENOI'smotions for summary judgment against the Gordon and LowenburgPlaintiffs' motion for certification of classes.

Joshua J. Lewis, Esq., at Jones, Walker, Waechter, Poitevent,Carrere & Denegre, L.L.P., in New Orleans, Louisiana, points outthat from ENOI's reading of the Court's order, there is amisunderstanding of the Court's ruling that ENOI "would not objectto the proofs of claim of either the Gordon or LowenburgPlaintiffs on the basis that a non-certified class representativefiled a proof of claim on behalf of a subsequently certifiedclass."

Mr. Lewis says that the extension is necessary so that all partiesin the case may obtain a clearer picture of the Court's intent inthe order, which may obviate the need for appeal altogether.

About Entergy

Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.-- http://www.entergy-neworleans.com/-- is a wholly owned subsidiary of Entergy Corporation. Entergy New Orleans provideselectric and natural gas service to approximately 190,000 electricand 147,000 gas customers within the city of New Orleans. EntergyNew Orleans is the smallest of Entergy Corporation's five utilitycompanies and represents about 7% of the consolidated revenues and3% of its consolidated earnings in 2004. Neither EntergyCorporation nor any of Entergy's other utility and non-utilitysubsidiaries were included in Entergy New Orleans' bankruptcyfiling. Entergy New Orleans filed for chapter 11 protection onSept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697). Elizabeth J.Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,Waechter, Poitevent, Carrere & Denegre, L.L.P., represent theDebtor in its restructuring efforts. Carey L. Menasco, Esq.,Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,at Liskow & Lewis, APLC, represent the Official Committee ofUnsecured Creditors. When the Debtor filed for protection fromits creditors, it listed total assets of $703,197,000 and totaldebts of $610,421,000. (Entergy New Orleans Bankruptcy News,Issue No. 25; Bankruptcy Creditors' Service, Inc.,http://bankrupt.com/newsstand/or 215/945-7000)

ENTERGY NEW: Wants Order on Gordon & Lowenburg Claimants Clarified------------------------------------------------------------------ Entergy New Orleans, Inc., asks Judge Jerry A. Brown of the U.S.Bankruptcy Court for the Eastern District of Louisiana for arehearing or clarification on the Court's reasons behind theOctober 13, 2006 Court Order that partially granted its requestfor summary judgment on the Motions for Class Certification filedby the Lowenburg and Gordon Claimants.

Nan Roberts Eitel, Esq., at Jones, Walker, Waechter, Poitevent,Carrere & Denegre, LLP, in Washington, D.C., reminds Judge Brownthat he orally ruled from the bench on July 13, 2006, grantingENOI's request for summary judgment and denying classcertification because of the Plaintiffs' inability to establishsuperiority. Subsequently, the Court requested briefing on thetreatment of the proofs of claim.

On Oct. 13, 2006, the Court entered its order and reasons fordenying class certification and overruling Debtor's objection tothe proofs of claim filed by the Claimants. In its reasons, theCourt ruled that it "declines to apply Fed. R. Bankr. P. 7023 tothis contested matter and will not certify either the Gordon orLowenburg [P]laintiffs as a class."

Mr. Eitel notes that the Court incorrectly interpreted Debtor'spurported "agreement . . . [of March 29, 2006] that they would notobject to the proofs of claim of either the Gordon or theLowenburg plaintiffs on the basis that a non-certified classrepresentative filed a proof of claim on behalf of a subsequentlycertified class . . ."

The Court then went on to rule that it "will allow the Gordon andLowenburg [P]laintiffs to make a motion to apply Rule 7023 to anyclaim objection filed by the debtor in the event that either classis certified by a court hearing the actions for classcertification."

The Debtor's statements were not intended to leave openindefinitely the class certification decision for another court,particularly when there is no class action now pending for theLowenburg Plaintiffs and the class action for the GordonPlaintiffs remains stayed, Mr. Eitel explains.

He adds that the Debtor's statement was simply meant to avoidplacing Claimants in a "trick bag" by urging them to file a proofof claim for the putative class in the Bankruptcy Court and thenobjecting to that very same proof of claim because it was improperwithout a certification decision before the bar date.

Thus, ENOI urges the Court to exercise its discretion to correctlegal and factual errors and to prevent manifest injustice bygranting its request for summary judgment and denying classcertification on the basis of superiority.

Joshua J. Lewis, Esq., at Jones, Walker, Waechter, Poitevent,Carrere & Denegre, L.L.P., in New Orleans, Louisiana, points outthat from ENOI's reading of the Court's order, there is amisunderstanding of the Court's ruling that ENOI "would not objectto the proofs of claim of either the Gordon or LowenburgPlaintiffs on the basis that a non-certified class representativefiled a proof of claim on behalf of a subsequently certifiedclass."

Mr. Lewis says that the extension is necessary so that all partiesin the case may obtain a clearer picture of the Court's intent inthe order, which may obviate the need for appeal altogether.

About Entergy

Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.-- http://www.entergy-neworleans.com/-- is a wholly owned subsidiary of Entergy Corporation. Entergy New Orleans provideselectric and natural gas service to approximately 190,000 electricand 147,000 gas customers within the city of New Orleans. EntergyNew Orleans is the smallest of Entergy Corporation's five utilitycompanies and represents about 7% of the consolidated revenues and3% of its consolidated earnings in 2004. Neither EntergyCorporation nor any of Entergy's other utility and non-utilitysubsidiaries were included in Entergy New Orleans' bankruptcyfiling. Entergy New Orleans filed for chapter 11 protection onSept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697). Elizabeth J.Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,Waechter, Poitevent, Carrere & Denegre, L.L.P., represent theDebtor in its restructuring efforts. Carey L. Menasco, Esq.,Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,at Liskow & Lewis, APLC, represent the Official Committee ofUnsecured Creditors. When the Debtor filed for protection fromits creditors, it listed total assets of $703,197,000 and totaldebts of $610,421,000. (Entergy New Orleans Bankruptcy News,Issue No. 25; Bankruptcy Creditors' Service, Inc.,http://bankrupt.com/newsstand/or 215/945-7000)

EVERGREEN INT'L: Extends 12% Senior Notes Offering to October 31----------------------------------------------------------------Evergreen International Aviation, Inc.'s pending offer to purchaseany and all of its outstanding 12% Senior Second Secured Notes Due2010 (CUSIP No. 30024DAF7) previously scheduled to expire at 5:00p.m., New York City time, on Oct. 24, 2006, has been extendeduntil 5:00 p.m., New York City time, on Oct. 31, 2006, unlessotherwise extended or earlier terminated. Except for the change,all terms and conditions of the tender offer are unchanged andremain in full force and effect.

Holders of approximately 97.94% of the outstanding principalamount of the Notes have tendered and consented to the proposedamendments to the indenture governing the Notes. Subject to thesatisfaction or waiver of the remaining conditions (including theconsummation of a new Senior Secured Credit Facility by Evergreen)set forth in the Offer to Purchase and Consent SolicitationStatement dated July 20, 2006, Evergreen currently intends toaccept the entire amount of Notes tendered pursuant to the tenderoffer and consent solicitation.

Credit Suisse Securities (USA) LLC is serving as the exclusiveDealer Manager and Solicitation Agent for the tender offer andconsent solicitation. Questions regarding the terms of the tenderoffer or consent solicitation should be directed to Credit SuisseSecurities (USA) LLC Attn: Liability Management Group at (212)325-7596 or (800) 820-1653. The Tender Agent and InformationAgent is D.F. King & Co., Inc. Any questions or requests forassistance or additional copies of documents may be directed tothe Information Agent toll free at (800) 290-6426 (bankers andbrokers call collect at (212) 269-5550).

Based in McMinnville, Oregon, Evergreen International Aviation,Inc. -- http://www.evergreenaviation.com/-- is a privately held global aviation services company that is active through severalsubsidiary companies.

* * *

As reported in the Troubled Company Reporter on Aug. 11, 2006,Standard & Poors' Ratings Services raised its rating on EvergreenInternational Aviation Inc.'s first-lien bank loan rating to 'B+'from 'B' and changed the recovery rating to '1' from '2'. Therating action reflects a change in the structure of the proposedcredit facility.

The Debtors previously sought the U.S. Bankruptcy Court for theDistrict of Delaware to approve their 2006 incentive plan forsalaried employees pursuant to Sections 363(b)(1) and 105(a) ofthe Bankruptcy Code.

The Creditors Committee asserts that the Debtors should bedesigning incentive plans for 2007, and not a retroactive, back-dated plan for a year in which the financial results are, for themost part, already established.

The Debtors have not cited any cases that have approved incentiveplans after the target results have been substantially met, andjust days or weeks before a plan of reorganization will be filed,Mr. Detweiler points out.

Implementing the Incentive Plan, without also tying it toconfirmation and consummation of the Debtors' contemplated amendedplan of reorganization, will not provide a true incentive for theDebtors' employees, Mr. Detweiler asserts.

Mr. Detweiler argues that tying payment of incentive compensationto both achieving the EBITDA goals and consummation of theproposed amended plan will impose a real and meaningful incentivefor employees while at the same time, assure that employees andunsecured creditors receive the benefit of the improved operatingresults.

Mr. Detweiler points out that the Incentive Plan's basic structureis significantly flawed because too high a percentage, 40%, of theincreased profits would be allocated to employees in the event theDebtors exceeds their target EBITDA by only 10%.

In order to remedy the defect, Mr. Detweiler proposes, that thetrigger for the maximum payout should be adjusted from 110% ofEBITDA goal to 120% or higher.

Murray Capital adds that the Debtors' motion is devoid of detailsregarding how many employees are eligible for awards under theIncentive Plan and what individual employees are eligible toreceive.

Murray Capital notes that about 77 employees have alreadybenefited from the key employee retention plan approved earlier inthe Debtors' cases, and now stand to benefit once again from theIncentive Plan.

In addition, on behalf of Murray Capital, Stuart M. Brown, Esq.,at Edwards Angell Palmer & Dodge LLP, in Wilmington, Delaware,argues that the treatment of payments to employees under theIncentive Plan as administrative expense claims under theBankruptcy Code will enable employees to leapfrog over the claimsof creditors.

Mr. Brown notes that the Debtors identify only certain significantequityholders as supporters of the Incentive Plan. However,members of the Creditors Committee, who represent the onlyconstituency with something to lose in these cases, do not supportthe Debtors' request, he adds.

FOAMEX INTERNATIONAL: Court Okays PMC & GFC-East Settlement Pact---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approvedFoamex International Inc. and its debtor-affiliates' settlementagreement with PMC Inc. and GFC-East Rutherford LLC.

Pursuant to the unredacted Settlement Agreement, the parties agreethat:

(a) on the Closing Date, GFC-East Rutherford, LLC, will pay Foamex L.P., $1,000,000 from GFC-ER's proceeds of sale of the real property under the Purchase and Escrow Agreement dated May 12, 2006, as amended;

(b) PMC, Inc., will pay Foamex's portion of the legal fees on a going forward basis in the defense of the Rhode Island Action -- a consolidated master complaint of 200 individual lawsuits filed in Rhode Island against various entities, including Foamex -- assuming the Closing Date is on or before October 31,2 006. If the Closing Date occur after October 31 to November 30, Foamex will pay one-half of the legal fees accruing to Foamex during that period. Thereafter, PMC will pay Foamex' portion of those legal fees incurred in defense of the Action;

(c) Foamex will dismiss its adversary proceeding against PMC, and releases PMC from any claims relating to the Rhode Island Action and the Adversary Proceeding; and

(d) If Foamex' insurance carriers reimburse it the legal fees it incurred in defense of the Rhode Island Action, Foamex will deliver to PMC the reimbursed funds exceeding Foamex' insurance deductible of $750,000, and any costs incurred by Foamex related to the Rhode Island Action not reimbursed by PMC.

FORD MOTOR: To Rely on Cheaper Chinese-Made Parts to Cut Costs--------------------------------------------------------------Ford Motor Company aims to purchase between $2.5 and $3 billion inauto parts from China this year, almost double the $1.6 to$1.7 billion it spent on Chinese-made parts in 2005, Eugene Tangand Stephen Engle at Bloomberg News reports.

William Ford Jr., Ford's chairman, said the company is buying moreparts from China to further cut costs. According to BloombergNews, components procured from China include steering systems,suspension, brakes, batteries and windshield glass.

In an interview in Beijing, Bloomberg News relates Mr. Ford'sdeclaration of China as a key component in Ford's global sourcingstrategy. Mr. Ford said that Ford intends to buy more Chineseparts as the quality of the country's manufacturing industryimproves. Mr. Ford was recently in China to recognize theawardees for the seventh annual Ford Motor Conservation &Environmental Grants (China).

As reported in the Troubled Company Reporter on Oct, 25, Fordposted a third quarter net loss of $5.8 billion, compared with a$284 million net loss in the 2005 third quarter. Ford disclosedits performance in the current third quarter reflected operatingchallenges in its North America, Asia Pacific and Africa, andPremier Automotive Group operations.

In September this year, Ford unveiled a revised version of its"Way Forward" turnaround plan. The company expects ongoing annualoperating cost reductions of approximately $5 billion from itsrestructuring efforts. Ford's actions have included buyout offersfor all 75,000 of its U.S. hourly workers, a 30% reduction insalaried staff, and the suspension of quarterly dividends. Therevised plan will also cut fourth-quarter production by 21% -- or168,000 units -- compared with the fourth quarter a year ago, andreduce third-quarter production by approximately 20,000 units.

About Ford Motor

Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000employees worldwide, the company's core and affiliated automotivebrands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln,Mazda, Mercury and Volvo. Its automotive-related services includeFord Motor Credit Company and The Hertz Corporation.

* * *

As reported in the Troubled Company Reporter on Oct. 24, 2006,Standard & Poor's Ratings Services placed its 'B' senior unsecureddebt issue ratings on Ford Motor Co. on CreditWatch with negativeimplications. At the same time, S&P affirmed all other ratings onFord, Ford Motor Credit Co., and related entities, except therating on Ford Motor Co. Capital Trust II 6.5% cumulativeconvertible trust preferred securities, which was lowered to 'CCC-' from 'CCC.'

At the same time, Fitch Ratings placed Ford Motor's 'B+/RR3'senior unsecured debt on Rating Watch Negative reflecting Ford'sintent to raise secured financing that would impair the positionof unsecured debt holders. Under Fitch's recovery rating scenarioit was estimated that unsecured holders would recoverapproximately 68% in a bankruptcy scenario, equating to a RecoveryRating of 'RR3' (50-70% recovery).

Moody's Investors Service has disclosed that Ford's very weakthird quarter performance, with automotive operations generating apre-tax loss of $1.8 billion and a negative operating cash flow of$3 billion, was consistent with the expectations which led to theSeptember 19 downgrade of the company's long-term rating to B3.

FTI CONSULTING: Appoints James Crownover to Class II of the Board-----------------------------------------------------------------FTI Consulting, Inc.'s Board of Directors appointed James W.Crownover, an independent director, to the Class II of the Board.His term will expire at the Company's next annual meeting in thespring of 2007.

Mr. Crownover had a 30-year career with McKinsey & Company,Inc. when he retired in 1998. He headed McKinsey's Southwestpractice for many years, and also co-headed the firm's worldwideenergy practice. He served as a member of McKinsey's Board ofDirectors and also served as director of Allied Waste Industries,Inc., Chemtura Corporation and Weingarten Realty Investors.Mr. Crownover also is chairman of Rice University's Board ofTrustees.

FTI Consulting Inc. (NYSE:FCN) provides problem-solving consultingand technology services to major corporations, financialinstitutions and law firms when confronting critical issues thatshape their future and the future of their clients, such asfinancial and operational improvement, major litigation, complexinvestigations, mergers and acquisitions and regulatory issues.FTI has 25 offices in major U.S. cities, and offices in Europe,Asia and Australia. FTI's total workforce of more than 1,400employees includes numerous PhDs, MBAs, CPAs, CIRAs and CFEs, whoare committed to delivering the highest level of service toclients.

* * *

As reported in the Troubled Company Reporter on Sept. 19, 2006,Standard & Poor's Ratings Services assigned its 'B+' rating to FTIConsulting Inc.'s $215 million senior notes due 2016, affirmed its'BB-' corporate credit rating on FTI and revised the outlook topositive from stable.

As reported in the Troubled Company Reporter on Sept. 18, 2006Moody's Investors Service assigned a Ba2 rating to FTI Consulting,Inc.'s proposed $215 million of senior unsecured notes and loweredthe ratings on its $150 million senior subordinated convertiblenotes to B1 from Ba3. Moody's affirmed the Ba2 corporate familyrating and the Ba2 rating on FTI's existing senior unsecurednotes. The rating outlook remains stable.

GENERAL NUTRITION: Moody's Assigns Loss-Given-Default Ratings-------------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US & Canadian Retail sector, the rating agencyconfirmed its B2 Corporate Family Rating for General NutritionCenters, Inc.

Additionally, Moody's revised and held its probability-of-defaultratings and assigned loss-given-default ratings on these loans andbond debt obligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Based in Pittsburgh, Pennsylvania, GNC Corp. fka General NutritionCenters Inc. -- http://www.gnc.com/-- is a specialty retailer of nutritional supplements, which includes vitamin, mineral andherbal supplements, sports nutrition products, diet and energyproducts and specialty supplements. GNC has more than 4,800retail locations throughout the United States, including more than1,000 domestic franchise locations, and locations in 43international markets.

GENTEK HOLDING: Moody's Assigns Loss-Given-Default Rating--------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed its B2 Corporate Family Rating for Gentek Holding, aswell as its Caa1 rating on the company's $135 million 2nd-lienterm loan due 2012. Those debentures were assigned an LGD5 ratingsuggesting lenders will experience a 78% loss in the event ofdefault.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Akron, Ohio, Gentek Holding, Incorporated, thruits subsidiary, Gentek Building Products, is engaged in themanufacture of vinyl, aluminum and steel sidings and accessories,as well as vinyl replacement and new construction windows.http://www.gentekinc.com

GETTY IMAGES: Sees Job Cuts, Staff Restructuring------------------------------------------------Getty Images, Inc., plans to layoff some of its employees as itproceeds with a staff restructuring, Kim Peterson at the SeattleTimes reports.

News of the proposed layoffs come in the wake of the company'sthird quarter results that analysts say fell short of revenueestimates, the Associated Press writes. The company reported$37.6 million of net income for the third quarter ended Sept. 30,2006, versus $39.3 million in the third quarter of 2005.

Getty's chief executive officer Jonathan Klein said in the SeattleTimes article that increased competition from cheaper imageproviders is hurting the company. The company expects to improveits finances by, among other things, placing its sales team indirect contact with its key costumers. Andrea James, a SeattlePost-Intelligencer reporter, said the staff restructuring willinclude a six-fold increase in the Company's market developmentexecutive staff.

As reported in the Troubled Company Reporter on June 13, 2006,Moody's Investors Service upgraded the credit ratings of GettyImages, Inc. and changed the ratings outlook to stable frompositive. The upgrade in the corporate family rating to Ba1 fromBa2 reflected Getty's leading market position, improving creditmetrics, impressive operating margins and good secular growthtrends in the stock imagery market. Moody's also upgraded itsrating on the company's $265 million series B convertiblesubordinated notes due 2023, to Ba2 from Ba3.

GREIF INC: Moody's Assigns Loss-Given-Default Rating---------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed its Ba2 Corporate Family Rating for Greif, Incorporated,as well as revised its rating on the company's $250 million 8.875%senior subordinate notes due 2012 to Ba3 from B1. Thosedebentures were assigned an LGD5 rating suggesting lenders willexperience an 82% loss in the event of default.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

GLOBAL POWER: Has Until Nov. 12 to File Schedules and Statements----------------------------------------------------------------The U.S. Bankruptcy Court for the District of Delaware extend,until Nov. 12, 2006, Global Power Equipment Group Inc. and itsdebtor-affiliates' period to file their schedules of assets andliabilities and statement of financial affairs.

The Debtors tell the Court they were unable to complete theirschedules and statements within the provided time under theBankruptcy Code due to their complex and diverse operations.

The Debtors say they need substantial time to gather informationform records to prepare the required schedules and statements.The Debtors believe that the extension will provide sufficienttime to prepare its requirements.

Headquartered in Tulsa, Oklahoma, Global Power Equipment GroupInc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for itscustomers in the domestic and international energy, power andinfrastructure and service industries. The Company designs,engineers and manufactures a range of heat recovery and auxiliaryequipment primarily used to enhance the efficiency and facilitatethe operation of gas turbine power plants as well as for otherindustrial and power-related applications. The Company hasfacilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn,Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai,China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).Attorneys at White & Case LLP and The Bayard Firm, P.A., representthe Debtors. The Official Committee of Unsecured Creditorsappointed in the Debtors' cases has selected Landis Rath & CobbLLP as its counsel. As of Sept. 30, 2005, the Debtors reportedtotal assets of $381,131,000 and total debts of $123,221,000. TheDebtors' exclusive period to filed a chapter 11 plan expires onJan. 26, 2007.

The preliminary ratings are based on information as of Oct. 26,2006. Subsequent information may result in the assignment offinal ratings that differ from the preliminary ratings.

The preliminary ratings reflect the credit support provided by thesubordinate classes of securities and the geographic and propertytype diversity of the mortgaged properties securing the underlyingCMBS collateral.

The collateral pool consists of 74 classes of pass-throughcertificates taken from 34 CMBS transactions.

A copy of Standard & Poor's complete presale report for thistransaction can be found on RatingsDirect, the real-timeWeb-based source for Standard & Poor's credit ratings,research, and risk analysis, at http://www.ratingsdirect.com/The presale can also be found on Standard & Poor's Web site athttp://www.standardandpoors.com/ Select Credit Ratings, and then find the article under Presale Credit Reports.

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Medford, Oregon, Harry & David Holdings, Inc. -- http://www.hndcorp.com/-- (formerly Bear Creek Holdings Inc.) is a leading multi-channel specialty retailer and producer of brandedpremium gift-quality fruit and gourmet food products and giftsmarketed under the Harry and David(R) brand, and premium roseplants, horticultural products and home and garden decor, marketedunder the Jackson & Perkins(R) brand.

HEARTLAND PARTNERS: Court Set Compromise Pact Hearing for Nov. 7----------------------------------------------------------------Heartland Partners L.P, and its debtor-affiliates gave notice toall of their known and unknown creditors that on Oct. 9, 2006, theDebtors have filed a motion seeking approval of their proposedsettlement agreement with Montana Department of EnvironmentalQuality, Trinity Railcar Repair, Inc., and Trinity Industries,Inc., in connection with the Debtors' pending action in theDistrict Court for the Sixteenth Judicial District of Montanarelated to the Debtors' activities in Miles City, Montana andcertain claims asserted by DEQ and Trinity against the Debtors'estates.

The Hon. Eugene R. Wedoff of the U.S. Bankruptcy Court for theNorthern District of Illinois will convene a hearing on Nov. 7,2006, at 10:00 a.m., in Courtroom 744, U.S. Courthouse, 219 SouthDearborn Street, in Chicago, Illinois, to consider the Debtors'request.

The proposed compromise agreement states that:

a) the Debtors will make a $2.5 million payment to the Montana Court, DEQ and Trinity Railcar;

b) Trinity Railcar will receive an allowed general unsecured claim against the Debtors' estates for $5 million capped at a distribution of $800,000;

d) the Debtors and each of their successors (together with the appointed Trustee, their affiliates, officers, directors, shareholders, environmental consultants, etc.) will be released from any and all claims held by DEQ relating to any liability those entities may have because of their relationship to the Debtors with respect to environmental contamination of property located in Montana, including claims arising under Mont. Code Ann. Section 75-10-715, and DEQ will be released by the Debtors; and

e) the Debtors and each of their successors will be released from any and all claims held by Trinity Railcar and Trinity Industries will be similarly released by the Debtors.

Objections to the Debtors' motion must be filed with the Clerk ofthe Bankruptcy Court, received on or before Nov. 1, 2006, andserved upon the Debtors' attorneys at:

Headquartered in Chicago, Illinois, Heartland Partners, LP,(Amex: HTL) is a based real estate limited partnership withproperties, primarily in the upper Midwest and northern UnitedStates. CMC Heartland is a subsidiary of Heartland Partners, L.P.and is the successor to the Milwaukee Road Railroad, founded in1847. The company and four of its affiliates filed for chapter 11protection on Apr. 28, 2006 (Bankr. N.D. Ill. Case No. 06-04764).Steven B. Towbin, Esq., at Shaw Gussis Fishman Glantz Wolfson &Towbin LLC, represents the Debtor. No Official Committee ofUnsecured Creditors has been appointed in the Debtors' chapter 11cases. When the Debtors filed for protection from theircreditors, they listed total assets of $4,375,000 and total debtsof $3,951,000. The Debtors' consolidated list of 20 largestunsecured creditors however showed more than $30 million inenvironmental litigation claims.

HVHC INC: Moody's Assigns Loss-Given-Default Ratings----------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US & Canadian Retail sector, the rating agencydowngraded its Ba3 Corporate Family Rating for HVHC, Inc.

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

INLAND FIBER: Wants Removal Period Extended to January 15---------------------------------------------------------Inland Fiber Group LLC and its debtor-affiliates ask the U.S.Bankruptcy Court for the District of Delaware to extend untilJan. 15, 2007, the period within which they may file notices ofremoval with respect to pending prepetition civil actions.

The Debtors inform the Court that they are parties to state courtaction involving, among other things, the Debtors' $225 million 9-5/8% unsecured senior notes due 2007.

The extension, the Debtors say, will give them more time toconfirm and consummate their plan of reorganization throughresolving the pending actions.

INTERLINE BRANDS: Moody's Assigns Loss-Given-Default Rating----------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed its B1 Corporate Family Rating for Interline BrandsInc., as well as its B3 rating on the company's $200 million8.125% Senior Subordinate Notes due 2014. Those debentures wereassigned an LGD5 rating suggesting noteholders will experience an82% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

INTERMEC INC: Moody's Assigns Loss-Given-Default Rating------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed its Ba2 Corporate Family Rating for Intermec Inc., aswell as its Ba3 rating on the company's $400 million SeniorUnsecured Shelf. Those debentures were assigned an LGD5 ratingsuggesting noteholders will experience an 85% loss in the event ofdefault.

Additionally, Moody's revised or affirmed its probability-of-default ratings and assigned loss-given-default ratings on theseloans and bond debt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

The company has not filed its quarterly report for the periodended June 30, 2006. The company told the Securities andExchanged Commission in August that "the compilation,dissemination and review of the information required to bepresented in the Form 10-QSB for quarter has imposed timeconstraints that have rendered timely filing impracticable withoutundue hardship and expense."

IPEX, Inc., fka Tamarack Ventures, Inc., operates an electronicplatform that directs telecommunication traffic and digitalcontent. In March of 2006, RGB Channel, Inc. Nevada was formed bythe company as a wholly owned subsidiary for the purpose of owningcertain assets purchased by the company pursuant to: (a) thePurchase Agreement dated June 7, 2005 by and among the company, BTech Ltd., Massimo Ballerini and Emanuele Boni; and (b) thePurchase Agreement dated June 7, 2005 by and among the company,RGB Channel SRL, Emanuele Boni, Massimo Ballerini and B Tech Ltd.The company has not yet transferred ownership of the RGB Assets toRGB Channel Nevada. RGB Channel Nevada has no separate businessoperations or assets to date.

ITEC ENVIRONMENTAL: Hires M. Sandoval as Chief Operating Officer----------------------------------------------------------------Mario Sandoval will be joining the management team of ItecEnvironmental Group, Inc., as the company's new Chief OperatingOfficer. Mr. Sandoval begins his new role with Itec onNov. 6, 2006.

Mr. Sandoval brings to Itec 19 years of extensive experience inoperations, supply chain management, quality control and chemicalengineering. Most recently, Mr. Sandoval served as SeniorBusiness Process Leader and Director of Operations at JohnsManville. Prior to Johns Manville, Mr. Sandoval was VP and SupplyChain Leader for GE Plastics' Polymershapes business. Mr.Sandoval held various operations management and engineering rolesfor 17 years in GE Plastics and is a GE certified Six Sigma MasterBlack Belt.

"I am extremely excited to be joining the Itec team," stated Mr.Sandoval. "I believe the Itec recycling process delivers asignificant competitive advantage and enables the company to meetour aggressive growth plans. I intend to initially focus oncompleting the ramp up and optimization of our first plant inNorthern California, through Q4, and then on expanding ourrecycling footprint to include additional plants throughout NorthAmerica."

Headquartered in Riverbank, California, Itec Environmental Group-- http://www.iteceg.com/-- offers solutions to pressing environmental problems faced by public agencies and privateentities involved in the recycling of plastics. In a researchpartnership with Honeywell FM&T, Itec has developed andsuccessfully commercialized a new system for the recycling ofplastic containers. Its proprietary Eco2(tm) System costs 30%less to operate, uses no water, removes all contaminates and odorsfrom the finished flake, is closed-loop and thus non-polluting,and produces no toxic by-products.

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Longueuil, Quebec, The Jean Coutu Group Inc.(TSX: PJC.A) -- http://www.jeancoutu.com/-- has a combined network of 2,175 corporate and franchised drugstores (under thebanners of Brooks and Eckerd Pharmacy, PJC Jean Coutu, PJCClinique and PJC Sante Beaute) in North America. The Group'sUnited States operations employ 46,000 people and comprise 1,853corporate owned stores located in 18 states of the Northeastern,mid-Atlantic and Southeastern United States. The Group's Canadianoperations and franchised drugstores in its network employ over14,000 people and comprise 322 PJC Jean Coutu franchised stores inQuebec, New Brunswick and Ontario.

JO-ANN STORES: Moody's Assigns Loss-Given-Default Ratings---------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US and Canadian Retail sector, the ratingagency confirmed its B1 Corporate Family Rating for Jo-Ann Stores,Inc.

Additionally, Moody's held its probability-of-default ratings andassigned loss-given-default ratings on these loans and bond debtobligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

JORDAN INDUSTRIES: Moody's Assigns Loss-Given-Default Rating------------------------------------------------------------ In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyrevised its Corporate Family Rating for Jordan Industries Inc. toCaa2 from Caa3, as well as revise its rating on the company's11.75% Senior Subordinate Disc. Debentures due 2009 to C from Ca.Those debentures were assigned an LGD6 rating suggestingnoteholders will experience a 95% loss in the event of default.

Additionally, Moody's affirmed its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

The four companies have shared voting and dispositive powers overthe shares of Kaiser common stock they own.

Kaiser's outstanding shares total 20,516,803 as of July 31, 2006.

Owl Creek Advisors' managing member, Jeffrey A. Altman, alsodiscloses in the same SEC filing that he is deemed to be thebeneficial owner of 1,406,179 shares or 6.9% of Kaiser'soutstanding common stock. Mr. Altman also has shared voting anddispositive power over the shares he beneficially owns.

Owl Creek Advisors is the general partner of Owl Creek I and OwlCreek II, and has the power to direct their affairs, includingdecisions regarding the receipt of dividends from, and thedisposition of the proceeds from the sale of, the shares.

KB HOME: Internal Stock Option Probe Delays Form 10-Q Filing------------------------------------------------------------KB Home has delayed filing its Quarterly Report on Form 10-Q forthe fiscal third quarter ended Aug. 31, 2006 in order to gainadditional time to complete the review of historical stock optiongrants and related accounting.

Members of the Audit and Compliance Committee of the KB Home Boardof Directors, in conjunction with outside legal counsel andaccountants, are conducting an internal review of the company'sstock option grants.

Although the internal review has not been concluded and no finalconclusions have been reached, the Sub-Committee has reached apreliminary conclusion that the actual measurement dates forfinancial accounting purposes of certain stock option grantslikely differ from the recorded grant dates. As a result,additional non-cash charges for stock based compensation relatingto these grants may need to be recorded.

Because the review is not yet complete, KB home has not yetdetermined the aggregate amount or the materiality of additionalnon-cash charges for such expense to be recorded in any specificprior period or in any future period. It has also not yetdetermined the impact of any related tax consequences. Untilconclusions are reached regarding the impact of the stock optionreview on the financial statements, the company says it will notbe able to file the Third Quarter 10-Q.

According to KB Home, the delayed filing of the Third Quarter 10-Qand the unavailability of third quarter financial statements mayresult in a default under the indentures governing its senior andsenior subordinated notes and credit agreements.

The company is in the process of seeking extensions of time todeliver third quarter financial statements to the banks under eachof its credit agreements. The company intends to file the ThirdQuarter 10-Q and to provide copies of that report to all trusteesunder its indentures and to the banks under its credit agreementson or before Dec. 24, 2006.

Unaudited Results

KB Home anticipates significant changes in its results ofoperations for the fiscal three- and nine-month periods endedAug. 31, 2006 compared to its results in the corresponding periodsof 2005.

Total revenues for the quarter ended Aug. 31, 2006 reached$2.67 billion, an increase of 6% from $2.53 billion in the year-earlier quarter. Total revenues for the nine months endedAug. 31, 2006 reached $7.46 billion in 2006, up 19% from $6.29billion in the nine months ended Aug. 31, 2005.

The increase in total revenues in the third quarter and first ninemonths of 2006 was mainly due to growth in housing revenues. Inthe third quarter of 2006, the increase in housing revenues wasdue to a higher average selling price compared to the same periodof 2005, partly offset by lower unit deliveries. For the firstnine months of 2006, housing revenue growth resulted fromincreased unit deliveries and a higher average selling price.

The company expects third quarter net income to decrease byapproximately 32%, from $227.5 million in the third quarter of2005 to $155.3 million in the third quarter of 2006.

For the nine months ended Aug. 31, 2006, the company expects netincome to increase slightly, from $531.8 million in the 2005period to $536.4 million in the 2006 period.

Despite higher revenues generated in the third quarter of 2006,the company expects construction operating income to decrease byapproximately 36%, from $373.8 million in the third quarter of2005 to $238.6 million in the third quarter of 2006, andconstruction operating income margin to decrease by approximately6 percentage points, from 14.9% for the third quarter of 2005 to8.9% for the third quarter of 2006. The margin decrease resultedprimarily from a lower housing gross margin, charges associatedwith inventory impairments and the abandonment of land purchaseoptions it no longer plans to pursue.

For the nine months ended Aug. 31, 2006, the Company expectsconstruction operating income to decrease by approximately 1%,from $864.2 million in the 2005 period to $854.6 million in the2006 period. Construction operating income margin for the samenine-month period is expected to decrease by approximately 2.3percentage points, from 13.8% for the 2005 period to 11.5% for the2006 period, due to a lower housing gross margin.

KB Home generated 5,989 net orders in the third quarter of 2006, adecrease of 43% from 10,467 net orders in the year-earlierquarter. The decrease in third quarter net orders reflected a 53%decline in U.S. net orders, partially offset by a 9% increase inFrance. The company generated 24,616 net orders in the first ninemonths of 2006, a decrease of 25% from 32,658 net orders in theyear-earlier period. The decrease in net orders for the firstnine months reflected a 32% decline in U.S. net orders, partiallyoffset by a 12% increase in France.

KB Home funds its business activities with cash flows generatedfrom operations and from debt financing, including the issuance ofpublicly-traded notes and by entering into credit agreements toborrow funds from banks and other financial institutions.

Currently, its primary credit agreement is a $1.5 billionunsecured revolving credit facility that allows the company todraw funds as needed to support our business. As ofOct. 10, 2006, the company had $600 million of outstandingborrowings under its $1.5 Billion Credit Facility and $487 millionof outstanding letters of credit, leaving $413 million ofavailable capacity.

Headquartered in Los Angeles, California, KB Home (NYSE: KBH) -- http://www.kbhome.com/-- is a homebuilder with domestic operating divisions in some of the fastest-growing regions and states: WestCoast-California; Southwest-Arizona, Nevada and New Mexico;Central-Colorado, Illinois, Indiana and Texas; and Southeast-Florida, Georgia, North Carolina and South Carolina. Kaufman &Broad S.A., the Company's publicly traded French subsidiary, ahomebuilding company in France. It also operates KB Home MortgageCompany, a full-service mortgage company for the convenience ofits buyers.

As reported in the Troubled Company Reporter on July 14, 2006,Moody's Investors Service affirmed all of the ratings of KB Home,including its Corporate Family Rating of Ba1, senior debt ratingof Ba1, and senior subordinated debt rating of Ba2. The ratingoutlook is revised to stable, from positive.

KB HOME: Receives Default Notice for 7-1/4% Senior Notes Due 2018-----------------------------------------------------------------KB Home received, on Oct. 26, 2006, a letter stating it serves asa notice of default under the indenture related to its 7-1/4%Senior Notes due 2018 from an entity claiming to manage funds thatbeneficially own more than 25% of the 7-1/4% Senior Notes. Theletter states that KB Home is in default under the indenturebecause it has not filed its Quarterly Report on Form 10-Q for thequarter ended Aug. 31, 2006 with the Securities and ExchangeCommission.

Under the indenture for any series of its senior notes, includingthe 7-1/4% Senior Notes, if KB Home fails to cure such a defaultwithin the 60 days after notice is effectively given, the defaultcould become an "event of default" under the indenture, allowingthe Trustee or the holders of at least 25% in aggregateoutstanding principal amount of such senior notes to acceleratethe maturity of such series of senior notes.

The Company is soliciting consents from the holders of each seriesof its senior notes, including the 7-1/4% Senior Notes, to approvea proposed amendment to the indenture governing such senior notesto extend the time for the Company to file its Quarterly Report onForm 10-Q for the quarter ended Aug. 31, 2006.

Headquartered in Los Angeles, California, KB Home (NYSE: KBH) -- http://www.kbhome.com/-- is a homebuilder with domestic operating divisions in some of the fastest-growing regions and states: WestCoast-California; Southwest-Arizona, Nevada and New Mexico;Central-Colorado, Illinois, Indiana and Texas; and Southeast-Florida, Georgia, North Carolina and South Carolina. Kaufman &Broad S.A., the Company's publicly traded French subsidiary, ahomebuilding company in France. It also operates KB Home MortgageCompany, a full-service mortgage company for the convenience ofits buyers.

As reported in the Troubled Company Reporter on July 14, 2006,Moody's Investors Service affirmed all of the ratings of KB Home,including its Corporate Family Rating of Ba1, senior debt ratingof Ba1, and senior subordinated debt rating of Ba2. The ratingoutlook is revised to stable, from positive.

KB HOME: Wants to Amend $1.65 Bil. Sr. Notes' Indenture-------------------------------------------------------KB Home is soliciting consents from the holders of its$1.65 billion of outstanding Senior Notes to approve a proposedamendment to the indenture governing the Senior Notes to allow theCompany to file its Quarterly Report on Form 10-Q for its fiscalquarter ended Aug. 31, 2006 a maximum of 60 days after the currentdeadline.

Holders of the Senior Notes are referred to the Company's ConsentSolicitation Statement dated Oct. 25, 2006 and the related Letterof Consent, which are being mailed to holders, for the detailedterms and conditions of the Consent Solicitation.

The Company is offering a consent fee of $7.50 in cash for each$1,000 principal amount of Senior Notes, subject to the terms ofthe Consent Solicitation.

The record date for determining the holders who are entitled toconsent is 5:00 p.m., New York City time, on Oct. 24, 2006. TheConsent Solicitation will expire at 5:00 p.m., New York City time,on Nov. 7, 2006, unless extended.

The Company has not yet filed with the Securities and ExchangeCommission its Quarterly Report on Form 10-Q for the fiscalquarter ended Aug. 31, 2006 in order to allow additional time tocomplete an internal review of its historical stock option grantsand related accounting. The Company intends to file the ThirdQuarter 10-Q and to provide copies of that report (including itsthird quarter financial statements) to the trustee under theIndenture on or before Dec. 24, 2006, which would be in time tocure any default that might be declared under the Indenture as aresult of the delayed filing of the Third Quarter 10-Q.

Specifically, the Consent Solicitation proposes to amend theIndenture to suspend until Feb. 23, 2007, the occurrence of eventsof defaults under Sections 501(4) and 501(5) of the Indenturecaused by matters described in Part III of the 12b-25 Filing,matters, and matters incidental that are not material to theCompany, and to obtain the waiver of all defaults caused by thesematters prior to the effective date of the proposed amendment.The proposed amendment and waiver will become effective promptlyfollowing execution of a supplemental indenture to the Indenture,receipt of the requisite consents and payment of the consent fee.

The Company has retained Global Bondholder Services Corporation toserve as its information agent and tabulation agent for theConsent Solicitation. Requests for documents should be directedto Global Bondholder Services at (866) 470-3800 or (212) 430-3774.The Company has also retained Banc of America Securities LLC andCitigroup Corporate and Investment Banking as joint solicitationagents for the Consent Solicitation. Questions concerning theterms of the Consent Solicitation should be directed to Banc ofAmerica Securities LLC at (888) 292-0070 (US toll-free) or (704)388-4813 (collect) or Citigroup Corporate and Investment Bankingat (800) 558-3745 (US toll-free).

Headquartered in Los Angeles, California, KB Home (NYSE: KBH) -- http://www.kbhome.com/-- is a homebuilder with domestic operating divisions in some of the fastest-growing regions and states: WestCoast-California; Southwest-Arizona, Nevada and New Mexico;Central-Colorado, Illinois, Indiana and Texas; and Southeast-Florida, Georgia, North Carolina and South Carolina. Kaufman &Broad S.A., the Company's publicly traded French subsidiary, ahomebuilding company in France. It also operates KB Home MortgageCompany, a full-service mortgage company for the convenience ofits buyers.

As reported in the Troubled Company Reporter on July 14, 2006,Moody's Investors Service affirmed all of the ratings of KB Home,including its Corporate Family Rating of Ba1, senior debt ratingof Ba1, and senior subordinated debt rating of Ba2. The ratingoutlook is revised to stable, from positive.

KINETEK INDUSTRIES: Moody's Assigns Loss-Given-Default Rating------------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Caa1 Corporate Family Rating for Kinetek Industries,Inc., as well as revised the rating on the company's 10.75% SeniorNotes due 2006 to Caa2 from Caa3. Those debentures were assignedan LGD4 rating suggesting noteholders will experience a 66% lossin the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

The Company disclosed that production at the plant was interruptedon Oct. 20, 2006 due to a pipeline failure. Repairs have beencompleted and operations are in the process of restarting; theCompany expects production to be back to normal today.

The Company also disclosed that the impact on fourth quarterpre-tax earnings is expected to be approximately $600,000 to$800,000.

Koppers Holdings Inc., (NYSE: KOP) -- http://www.koppers.com/-- with corporate headquarters and a research center in Pittsburgh,Pennsylvania, is an integrated producer of carbon compounds andtreated wood products. Including its joint ventures, Koppersoperates facilities in the United States, United Kingdom, Denmark,Australia, China, the Pacific Rim and South Africa.

* * *

Koppers Holdings Inc.'s balance sheet at June 30, 2006 showedtotal assets of $625 million and total liabilities of $733 millionresulting in a total stockholders' deficit of $108 million. Totalstockholders' deficit at Dec. 31, 2005 stood at $206 million.

These rating actions reflect improved operating performance andliquidity. During the first six months of 2006 billed minutesincreased by 18%, while the average revenue per minute declined6%. Revenues grew 12% year over year and profitability improved.

The SGL-2 rating reflects a good liquidity profile with theexpectation of positive free cash flow from operations, solidavailability under the $40 million revolver and expanded headroomunder bank financial covenants as a result of a proposed amendmentto its secured credit facility.

The ratings continue to reflect high leverage and a relativelysmall revenue base for the rating category, a leading marketposition supported by high EBITDA margins, and good growthprospects for language translation services.

Moody's took these rating actions with respect to Language LineHoldings, Inc.:

The stable outlook anticipates moderate revenue and profitabilitygrowth over the next 12-18 months. Consistent with LanguageLine's performance in the first half of 2006, Moody's expectsbilled minute growth to substantially exceed declines in averagerevenue per minute.

The ratings could be upgraded if improving financial performanceresults in Debt to EBITDA and free cash flow to debt that can besustained at less than 4.5x and over 8%, respectively.

The ratings could be pressured if pricing trends worsen or newcompetitors or technologies emerge resulting in declining revenuesand operating margins. A significant debt financed acquisitionthat weakens credit metrics could also pressure the rating. Ifthese conditions result in Debt to EBITDA and free cash flow todebt that are expected to be sustained at 7x and less than 3%,respectively, a downgrade is possible.

Based in Monterey, California, Language Line, through itsoperating subsidiaries, is a leading global provider ofover-the-phone interpretation services from English into more than150 languages. The company reported revenues of$154 million for the twelve month period ending June 30, 2006.

LE GOURMET: Turns to Minken & Assoc. for Tax Advisory Services--------------------------------------------------------------The U.S. Bankruptcy Court for the District of New Jersey gaveLe Gourmet Chef, Inc., authority to employ Minken & Associates,P.C., as its tax advisors.

As reported in the Troubled Company Reporter on Oct. 5, 2006, theDebtor anticipates that Minken will provide tax compliance andadvisory services, including, but not limited to:

a) preparation of the Jan. 29, 2006, federal and state income tax returns;

b) preparation of the Jan. 28, 2007, federal and state income tax returns; and

c) assistance with tax inquiries and tax issues on an ongoing basis.

Steven Minken told the Court that his firm charges:

-- $21,500, on a fixed fee basis, for income tax return preparation services; and

-- $150 to $225 an hour for tax advisory services.

Mr. Minken assured the Court that his firm does not hold anyinterest adverse to the Debtor, and is a "disinterested person"as that term is defined in Sec. 101(14) of the Bankruptcy Code.

LENNOX INTERNATIONAL: Moody's Assigns Loss-Given-Default Rating--------------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Ba2 Corporate Family Rating for Lennox InternationalInc., as well as the (P)B1 rating on the company's $250 millionSubordinate Shelf LGD6, 97%. Those debentures were assigned anLGD6 rating suggesting noteholders will experience a 97% loss inthe event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company and its subsidiary Lennox Trust I:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Richardson, Texas, Lennox International Inc. isengaged in the manufacture of home and industrial heating andcooling equipments. http://www.lennoxinternational.com/

The new notes will constitute purchase money indebtedness underthe indentures of Level 3. The net proceeds can be used foracquisitions or expansion of the company's infrastructure. Withthis offering, the company will have a fully drawn $730 millionsecured term loan facility due 2011 as well as $1.8 billion ofsenior unsecured notes at Level 3 Financing. Fitch expects thatthe proceeds from this new offering will be in part used for thecompany's acquisition of Broadwing. The total cash requirement inthis transaction is $744 million, but only $394 million whennetted against second quarter 2006 outstanding cash at Broadwing.The Broadwing acquisition is expected to close in first quarter2007. Level 3 continues to maintain strong liquidity and finishedthird quarter 2006 with $731 million of cash and $509 million ofmarketable securities. Level 3's current maturity schedule is$2 million in 2007, $138 million in 2008 and $362 million in 2009.

Level 3's third quarter earnings results showed strong year-over-year revenue and operating EBITDA growth in core communicationsservices due to both organic growth as well as contributions fromacquisitions. Integration and capital expenditures are expectedto remain high for the next couple of years, but with a steadytrend of strengthening operating and free cash flow. Grossmargins continued to strengthen in the third quarter reaching 57%and this trend should continue as the low margin SBC contractcontribution continues to reduce and acquisitions are integrated.

Fitch believes that acquisition activity at Level 3 will becurtailed due to the outstanding amount of integration effortwhich is currently present. Fitch also expects that Level 3 couldtake advantage of opportunities to reduce interest expense inorder to strengthen its credit profile on a going forward basis.Opportunities to reduce interest expense could include the abilityto convert debt to equity, which is present at $1.2 billion ofsenior convertible notes that can convert at less than $4 pershare. The company also has the ability to call over $600 millionof high coupon debt due in 2010, in March 2007.

The notes are issued under Rule 144A with registration rights.Under the indentures of Level 3, the new debt will constitutepurchase money indebtedness and will be used solely to fund thecost of construction, installation, acquisition, lease, anddevelopment or improvement of telecommunications assets.

All ratings on Level 3, including the 'CCC+' corporate creditrating, are affirmed. The outlook is stable. Debt outstanding asof Sept. 30, 2006, totaled approximately $6.6 billion.

A facilities-based provider of communications services, Level 3historically provided predominantly long-haul telecom services.In response to falling prices and declining narrowband demand, thecompany, like many of its peers, has shifted its strategic focusto selling new products like wholesale voice over Internetprotocol in regional and metropolitan areas.

Level 3's entry into these new markets has been acceleratedthrough a series of acquisitions of regional competitive localexchange carriers, as well as the pending acquisition of BroadwingCorp., a long-haul communications provider with a sizableenterprise business.

MAAX HOLDINGS: Moody's Assigns Loss-Given-Default Rating-------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyrevised the Corporate Family Rating for Maax Holdings Inc. to B2from B3, as well as the rating on the company's 11.57% SeniorUnsecured Discount Notes due 2013 to Caa1 from Caa3. Thosedebentures were assigned an LGD6 rating suggesting noteholderswill experience a 99% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

MAPCO EXPRESS: Moody's Assigns Loss-Given-Default Ratings---------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US and Canadian Retail sector, the ratingagency downgraded its B2 Corporate Family Rating for Jo-AnnStores, Inc to B3.

Additionally, Moody's held its probability-of-default ratings andassigned loss-given-default ratings on these loans and bond debtobligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

MERIDIAN: Files Further Revised Fourth Plan & Approved Disclosure-----------------------------------------------------------------Meridian Automotive Systems, Inc., and its eight debtor-affiliates delivered to the U.S. Bankruptcy Court for the Districtof Delaware last week further revised copies of their FourthAmended Joint Plan of Reorganization and Disclosure Statement.

The Honorable Mary F. Walrath approved Oct. 25 the Debtors'Disclosure Statement as published in the Troubled Company Reporteron Oct. 27, 2006.

Meridian President and Chief Executive Officer Richard E. Newstedrelated that the Debtors were able to resolve variousintercreditor issues, including valuation of the Debtors' estatesand the assertion of adequate protection claims under Section507(b) of the Bankruptcy Code, with the Prepetition First LienLenders, the Prepetition Second Lien Lenders, and the OfficialCommittee of Unsecured Creditors.

Compromise and Settlement of Intercreditor Issues

The latest Plan contemplates a proposed compromise and settlementof intercreditor issues, which avoids the burden and expense oflitigation related to the intercreditor issues, reducesMeridian's administrative expenses, and removes potentialimpediments to timely confirmation of the Plan, Mr. Newsted says.

Pursuant to the Compromise and Settlement, the PrepetitionLenders will not be required to prosecute the allowance of theirSection 507(b) Claims and the Committee will not have to opposethe allowance of the Claims on valuation and other grounds.Instead, the Section 507(b) Claims that may be asserted by thePrepetition Lenders will be settled based on the agreed-uponformula for the distribution of recoveries by the LitigationTrust.

The Compromise and Settlement further contemplates that thePrepetition Lenders will retain all postpetition interest andprofessional fees they have received to date and are entitled toreceive through the Effective Date.

The aggregate face amount of the $98,000,000 worth of New Notesto be issued on the Effective Date will be reduced by the netproceeds realized by the Debtors in connection with theFowlerville Sale or Leaseback if the transaction closes by theEffective Date.

The issue price of a New Note will equal its fair market value onthe date it is issued if the New Notes or the First Lien Claimsare considered traded on an established market for United Statesfederal income tax purposes.

If the New Notes and First Lien Claims are not considered tradedon an established market for United States federal income taxpurposes, then the issue price of a New Note will equal itsstated principal amount.

De Minimis Distributions

Under the Amended Plan, the Reorganized Debtors will have noobligation to make a distribution on account of an Allowed Claimfrom any Distribution Reserve or otherwise if the amount to bedistributed is less than $25.

The Certificate of Incorporation and By-Laws will govern the selection of directors and officers of Reorganized Meridian after the Effective Date.

3. Litigation Trust Agreement

After the payment of expenses incurred prosecuting the Avoidance Actions and the Reserved Actions, any recoveries obtained by the Litigation Trust will be distributed in this manner:

(i) Prepetition First Lien Claim Trust Interests will be paid Pro Rata from the Litigation Trust assets consisting of 30% of the net proceeds;

(ii) Prepetition Second Lien Claim Trust Interests will be paid Pro Rata from the Litigation Trust assets consisting of 60% of the net proceeds; and

(iii) the General Unsecured Claim Trust Interests will be paid Pro Rata from the Litigation Trust assets consisting of 10% of the net proceeds.

The General Unsecured Claim Trust Interests are entitled to a maximum aggregate distribution of $2,000,000 from the Litigation Trust assets. Thereafter, the Prepetition First Lien Claim Trust Interests will be paid Pro Rata from the trust assets consisting of 30% of the proceeds realized by the Litigation Trust, and the Prepetition Second Lien Claim Trust Interests will be paid Pro Rata from the trust assets consisting of 70% of the proceeds realized by the Litigation Trust.

Judge Walrath directs the Debtors to cause the ConfirmationHearing Notice to be published in The Detroit Free Press, USAToday, and the national edition of The Wall Street Journal nolater than Nov. 8, 2006.

The Court fixes Nov. 22, 2006, as the last date for filing andserving written objections to confirmation of the Plan.

MERIDIAN AUTOMOTIVE: Ballots Must Be Received by November 22------------------------------------------------------------The Honorable Mary F. Walrath of the U.S. Bankruptcy Court for theDistrict of Delaware approves Meridian Automotive Systems Inc. andits debtor-affiliates' proposed procedures for the solicitationand tabulation of votes to accept the Oct. 25, 2006, FourthAmended Joint Plan of Reorganization, subject to certainmodifications.

Judge Walrath permits the Debtors to distribute or cause to bedistributed, no later than Oct. 28, 2006, the Voting SolicitationPackages by first class mail to all Holders of Claims in Classes 3through 6.

Record Date

Judge Walrath establishes Oct. 25, 2006, as the record date forpurposes of determining Holders of Claims and Meridian PrepetitionInterests entitled to receive the Voting Solicitation Package, theUnimpaired Notice of Non-Voting Status or the Rejecting ClassesNotice and determining which Holders of Claims are entitled tovote on the Fourth Amended Plan.

Voting Deadline

The Court rules that the original ballots must be properlyexecuted, completed and returned to the Voting Agent no laterthan Nov. 22, 2006.

Rule 3018 Motion Deadline

Judge Walrath gives the Debtors until Oct. 27, 2006, to object toclaims for purposes of voting.

The Court directs any party to file, by Nov. 10, 2006, a Motionpursuant to Rule 3018 of the Federal Rules of Bankruptcy Procedureto have its claims allowed for purposes of voting on the Plan.

The Court will convene a hearing on Nov. 17, 2006, to consider anyRule 3018 Motions.

The collateral in the aforementioned transactions consists ofadjustable-rate mortgages extended to prime borrowers secured byfirst liens on primarily one- to four-family residentialproperties. As of the September 2006 distribution date, thetransactions are seasoned from a range of 22 to 28 months and thepool factors (current mortgage loan principal outstanding as apercentage of the initial pool) range from approximately 29% to37%.

The affirmations reflect a satisfactory relationship betweencredit enhancement and future loss expectations and affectapproximately $1.3 billion of outstanding certificates. Allaffirmed classes have experienced a slight growth in CE since thelast rating action in November 2004. The upgrades reflect animprovement in the relationship of CE to future loss expectationsand affect approximately $90.5 million of certificates. The CElevels for all upgraded classes have more than doubled theiroriginal enhancement levels since the closing date.

The agreement is subject to approval by Mesaba's AFA-representedemployees and supports the airline in meeting its requiredreduction in annual labor costs.

"We appreciate the hard work of the flight attendants'representatives in reaching this deal. We have been in non-stopnegotiations the past few days that have resulted in a solutionthat works for the company and the flight attendants," MesabaAirlines president and chief operating officer John Spanjers said.

"Reaching a second consensual agreement in just as many daysbuilds on the progress we have already made in our plan to emergesuccessfully from restructuring."

Mesaba reached Oct. 28 a tentative agreement with the AirlinePilots Association. Mesaba employees represented by the TransportUnion of America also have reached an agreement on permanent wageand benefit reductions. Mesaba remains focused on reaching asimilar agreement with the Aircraft Mechanics FraternalAssociation.

The company's restructuring plan centers on three goals:

-- securing its core business of 49 Saabs with Northwest Airlines;

-- growing its business with Northwest; and

-- achieving a cost structure that positions Mesaba to be very competitive for new opportunities.

The agreement, which is subject to approval by the union's masterexecutive council and by Mesaba's ALPA-represented employees,assists the airline in meeting its required reduction in annuallabor costs.

"All along we have believed that consensual agreements are in thebest interest of all involved -- the company, its employees, andour passengers," Mesaba Airlines president and chief operatingofficer John Spanjers said.

"This has been a challenging process and we appreciate ALPa'sefforts in working toward a solution. We look forward tocontinuing to work together to ensure Mesaba emerges successfullyfrom bankruptcy and is positioned for growth."

To date, a tentative agreement on permanent wage and benefitreductions also has been reached by Mesaba employees representedby the Transport Workers Union of America.

The company's restructuring plan centers on three goals:

-- securing its core business of 49 Saabs with Northwest Airlines;

-- growing its business with Northwest; and

-- achieving a cost structure that positions Mesaba to be very competitive for new opportunities.

Pending a final ruling on the Debtor's request, Judge Kishelauthorizes the Debtor to:

(a) borrow, subject to and in accordance with the terms and conditions set forth in its request; and

(b) enter into the Pledge Agreement with LaSalle Bank National Association to secure the payment of its obligations.

The lien in the collateral granted to Marathon Structured FinanceFund, LP, by the Pledge Agreement constitutes a valid, binding,enforceable and perfected first priority lien in the Collateralin favor of Marathon and constitutes a "Perfected PermittedLien," provided that the collateral pledged to secure the lienwill not exceed $50,000, Judge Kishel rules.

Judge Kishel also authorizes Marathon to take any action it deemsnecessary or appropriate to perfect the liens and securityinterests granted to it under the Pledge Agreement.

As reported in the Troubled Company Reporter on Oct. 12, 2006,Will R. Tansey, Esq., at Ravich Meyer Kirkman McGrath & Nauman,in Minneapolis, Minnesota, discloses that the Debtor istransferring its banking from Wells Fargo NA to LaSalle. In viewof this transfer, the Debtor is terminating its credit cards withWells Fargo and seeks credit in connection with a LaSalleCommercial Card Agreement.

Mr. Tansey tells the Court that the Debtor seeks the new creditcard to insure that it has immediate credit available -- 24 hoursa day -- to address unforeseen emergencies and normal operatingcosts. The credit sought is merely to replace the Debtor'scredit card with Wells Fargo and is not significantly increasingthe amount of the Debtor's outstanding credit, Mr. Tanseyexplains.

The rating affirmations reflect the stable pool performance andminimal paydown since issuance. As of the October 2006distribution date, the pool has paid down 3.5% to $833 millionfrom $863 million at issuance.

One loan (.9%) is currently in special servicing. The loan issecured by an office property in Duluth, Georgia. The propertyhas been 100% vacant since the sole tenant declared bankruptcy in2005. The special servicer is actively marketing the space.Losses are possible; however, any losses are expected to beabsorbed by the non-rated class O.

The Fitch stressed debt service coverage ratios for Beverly Centerand 315 Hudson Street as of year-end 2005 were 1.38 times (x) and2.57x, respectively, compared to 1.38x and 1.75x at issuance. Inaddition, occupancy at the two properties has been relativelystable since issuance.

The net cash flow for 111 Eighth Avenue has declined considerablysince issuance. However, the property is now 100% occupied andthe decline in NCF was attributable to tenant improvement andleasing commissions in connection with new leases.

MUELLER GROUP: Moody's Assigns Loss-Given-Default Rating-------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B1 Corporate Family Rating for Mueller Group Inc.,as well as the B3 rating on the company's $315 million 10% SeniorUnsecured Subordinate Notes due 2012. Those debentures wereassigned an LGD5 rating suggesting noteholders will experience an82% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company and its subsidiary Mueller WaterProducts:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Portsmouth, New Hampshire, Mueller Group Inc.manufactures water infrastructure and flow control products foruse in water distribution networks and piping systems.

NASH FINCH: Moody's Assigns Loss-Given-Default Ratings------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US and Canadian Retail sector, the ratingagency confirmed its B1 Corporate Family Rating for Nash FinchCompany.

Additionally, Moody's held its probability-of-default ratings andassigned loss-given-default ratings on these loans and bond debtobligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof its ratings as Moody's research has shown that credit losses onbank loans have tended to be lower than those for similarly ratedbonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Nash Finch Company -- http://www.nashfinch.com/-- is a food distribution company. Nash Finch's core business, fooddistribution, serves independent retailers and militarycommissaries in 31 states, the District of Columbia, Europe, Cuba,Puerto Rico, Iceland, the Azores and Honduras. The Company alsoowns and operates a base of retail stores, primarily supermarketsunder the Econofoods(R), Family Thrift Center(R) and Sun Mart(R)trade names.

NATIONAL ENERGY: Inks Pact With AREP to Sell Stake in NEG Holdings------------------------------------------------------------------National Energy Group, Inc., has entered into an agreement withNEG Oil & Gas LLC, NEG, Inc. and American Real Estate HoldingsLimited Partnership for the possible purchase of the Company'smembership interest in NEG Holding LLC.

The Company says, that assuming its membership interest in NEGHolding is purchased, it is anticipated that it will distribute toits common stockholders, including NEG Oil & Gas, through adividend or a tender offer, an aggregate of about $37 million.

Following the distribution and after giving effect to any taxreserves or payments and the repayment of its 10.75% senior notesdue 2007, the Company expects to retain cash balances of about$40 million to $47 million. In the event that the purchase pushesthrough, the Company's Board of Directors intends to consider theappropriate application of the funds, including but not limited tothe acquisition of producing oil and gas properties and relatedbusinesses and assets or the equity in another entity which ownsthe properties, businesses and assets.

The Company disclosed that American Real Estate Partners, L.P.intends to exercise its option to purchase the membership interestonly if AREP's previously announced transaction under its letterof intent with Riata Energy, Inc. is completed.

The Company also disclosed that if the transactions AREP are notconsummated, then it will remain subject to the terms of theMerger Agreement, which includes an agreed upon termination dateof Dec. 1, 2006 in the event the transactions contemplated by theMerger Agreement is not consummated.

The Company previously disclosed on Dec. 7, 2005, that it hadentered into an Agreement and Plan of Merger with NEG Oil & Gas,Newco and AREH, pursuant to which the Company was to merged intoNewco. NEG Oil & Gas, a wholly-owned indirect subsidiary of AREP,is the owner of 50.1% of the Company's common stock.

On Sept. 11, 2006, the Company also disclosed that Riata and AREPentered into the Letter of Intent, where Riata obtained an optionto acquire NEG Oil & Gas, which holds all of AREP's oil and gasinvestments, including the acquisition by NEG Oil & Gas or NEGHolding of the Company's membership interest in NEG Holding> Butexcluding the acquisition of any of the Company's common stock byRiata. The transaction also contemplates that the managementagreements pursuant to which the Company manages the operations ofNEG Operating LLC, National Onshore LP and National Offshore LPwill be terminated.

Under Section 5.4 of the NEG Holding Operating Agreement, NEG Oil& Gas, or its successor is permitted to purchase the Company'smembership interest in NEG Holding at a price equal to the fairmarket value of the interest.

The Company further disclosed that its Board of Directors hasapproved the agreement.

A full text-copy of the agreement with NEG Oil & Gas LLC, NEG,Inc. and American Real Estate Holdings Limited Partnership may beviewed at no charge at http://ResearchArchives.com/t/s?1418

Based in Dallas, Texas, National Energy Group, Inc.,(OTC BB: NEGI) -- http://www.negx.com-- is a management company engaged in the business of managing the exploration, development,production and operations of oil and natural gas properties,primarily located in Texas, Oklahoma, Arkansas and Louisiana (bothonshore and in the Gulf of Mexico). The Company manages the oiland natural gas operations of NEG Operating LLC, National OnshoreLP and National Offshore LP, all of which are affiliated entities.The Company's principal assets are its membership interest in NEGHolding LLC and its management agreements with NEG Operating LLC,National Onshore LP and National Offshore LP.

National Energy Group Inc.'s balance sheet at June 30, 2006 showedtotal assets of $147 million and total liabilities of $151 millionresulting in a total stockholders' deficit of $4 million.

NORCROSS SAFETY: Moody's Assigns Loss-Given-Default Rating---------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B1 Corporate Family Rating for Norcross SafetyProducts L.L.C., as well as revised the rating on the company's$151.6 Million 9.875% Senior Subordinate Notes due 2011. Thosedebentures were assigned an LGD4 rating suggesting noteholderswill experience a 64% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company and its holding parent SafetyProducts Holdings, Inc:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

The TMD Settlement Agreement provides that the Company willreimburse the TMD Expenses upon the earlier of:

(a) Dec. 22, 2006, and

(b) the closing date of:

(i) a registered equity offering and/or a debt project financing in which the Company raises not less than the aggregate amount of $25,000,000, or

(ii) a significant corporate transaction in which any person, together with all affiliates and associates, becomes the beneficial owner of 51% or more of the outstanding shares of common stock, or there is a sale, lease, exchange or other transfer of assets valued at $12,000,000 or greater.

The settlement also provides that if the Company receives any cashpayment in full or partial settlement of the ASARCO Claim, it isrequired to first remit the portion of the cash payment to TMDAcquisition to fully pay the outstanding balance of the TMDExpenses.

The principals of TMD Acquisition are Ronald Hirsch and StephenSeymour. Mr. Hirsch serves as the Company's chairman of the boardof directors, and Mr. Seymour is a director.

Zinc Assets Transaction

The Company pursued, in May 2004, an opportunity to acquire assetscomprising ASARCO Inc.'s Tennessee Mines Division zinc business.ASARCO selected the Company with whom to negotiate the sale andpurchase of the Zinc Assets. The Company, in Oct. 2004, enteredinto a secured bridge loan agreement with Regiment Capital III,L.P., the terms of which prevented an investment in the ZincAssets without Regiment Capital's prior written consent. RegimentCapital did not consent to the direct acquisition of the ZincAssets. Mr. Hirsch and Mr. Seymour, to assist the Company,entered into an Agreement pursuant to which they obtained theright to acquire the Zinc Assets. They subsequently assigned theright to TMD Acquisition, a private corporation formed bythem to facilitate an asset purchase agreement with ASARCO.

To preserve any right of action that it may have against ASARCOand its bankruptcy trustee, the Company and TMD Acquisitionentered into a settlement agreement pursuant to which the Companyhas taken an assignment of the Acquisition Agreement.

Headquartered in Dragoon, Arizona, Nord Resources Corporation(Pink Sheets: NRDS) -- http://www.nordresources.com/-- is a natural resource company focused on near-term copper productionfrom its Johnson Camp Mine and the exploration for copper, goldand silver at its properties in Arizona and New Mexico. TheCompany also owns approximately 4.4 million shares of Allied GoldLimited, an Australian company. In addition, the Companymaintains a small net profits interest in Sierra Rutile Limited, aSierra Leone, West African company that controls the world'shighest-grade natural rutile deposit.

* * *

As reported in the Troubled Company Reporter on Sept. 8, 2006 NordResources Corporation's balance sheet at June 30, 2006, showed$4,214,657 in total assets and $8,430,713 in total liabilities,resulting in a $4,216,056 stockholders' deficit. The Company hada $3,120,573 deficit at March 31, 2006.

OFFICEMAX INC: Moody's Assigns Loss-Given-Default Ratings---------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. and Canadian retail sector, the ratingagency confirmed its Ba2 Corporate Family Rating for OfficeMaxIncorporated. Additionally, Moody's revised or held itsprobability-of-default ratings and assigned loss-given-defaultratings on these loans and bond debt obligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody'salpha-numeric scale. They express Moody's opinion of thelikelihood that any entity within a corporate family will defaulton any of its debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Itasca, Illinois, OfficeMax(R) Incorporated(NYSE: OMX) -- http://www.officemax.com/-- provides office supplies and paper, print and document services, technologyproducts and solutions, and furniture to consumers and to large,medium and small businesses. OfficeMax customers are served byapproximately 40,000 associates through direct sales, catalogs,the Internet and approximately 950 superstores.

Concurrently, the ratings on all classes are removed fromCreditWatch with negative implications, where they were placedSept. 21, 2006.

The lowered ratings reflect deterioration in credit enhancementresulting from the continued poor performance of the underlyingpool of manufactured housing contracts, which were originated byOrigen Financial LLC.

In addition, the cumulative net loss rate of 15.24% is trendinghigher than initially expected.

The high level of losses has depleted the transaction's creditsupport. Overcollateralization has been reduced to 1.95% of theinitial collateral balance, which is below the required level of7%, and it continues to decline as a percent of the current poolbalance.

With 55 months of performance and a pool factor of 52.59%, thetransaction continues to have high delinquency levels, with almost4.00% of the pool 60-plus-days delinquent, including repossessioninventory.

The affirmed ratings reflect credit enhancement that is sufficientto support the senior classes relative to the stressed losses atthe current rating levels.

The senior notes are benefiting from the sequential-pay structureof the scheduled principal payments, which has increased thepercentage of subordination available.

S&P believes that because of the higher-than-expected cumulativenet losses, the remaining credit support is no longer sufficientto maintain the previous ratings on the mezzanine and subordinatecertificates.

Standard & Poor's will continue to monitor the ratings associatedwith this transaction in anticipation of future creditdeterioration and a higher level of losses.

"As with the recent acquisition of Innovative SurvivabilityTechnologies (IST), Overwatch products and technologies clearlycomplement our existing portfolio," said Richard J. Millman,president of Textron Systems. "This addition of exceptionalintelligence analysis capabilities will allow us to more fullyaddress the emerging needs of our government and other customersin this dynamic wartime and global environment while also gainingsome of the industry's top talent and their established and highlyloyal customer base."

Mr. Millman added, "Due to high customer demand and thecomplementary nature of these products with our existingplatforms, we expect this acquisition to result in annual revenuesexceeding $300 million over the next five years."

The transaction is subject to normal regulatory approvals and isexpected to close by the end of the year.

About Textron Systems

Textron Systems Corporation supports military and homelandsecurity missions with strike weapons, as well as mobility andsurveillance systems, and provides commercial and general aviationwith engines and actuation systems.

About Overwatch

Headquartered in Morristown, New Jersey, Overwatch Systems -- http://www.overwatch.com/-- develops and markets integrated systems that enable analysts to generate actionable intelligencefaster and more effectively for the war fighter, first responder,analyst and policy maker. With approximately 385 employees inseveral major locations, Overwatch Systems is expected to generateapproximately $105 million of revenue with strong margins, in2006.

The transaction is subject to customary regulatory approvals andis expected to close by the end of the year. Ratings are likelyto be withdrawn after the close, as all rated debt is expected tobe repaid.

Overwatch develop intelligence analysis software tools for theintelligence community and the U.S. military. The market outlookfor the company's products is quite favorable due to the highlevels of U.S. defense spending and the importance of intelligenceanalysis and dissemination to both the global war on terror andthe transition to network centric warfare.

PANTRY INC: Moody's Assigns Loss-Given-Default Ratings------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US and Canadian Retail sector, the ratingagency confirmed its B1 Corporate Family Rating for The Pantry,Inc.

Additionally, Moody's revised and held its probability-of-defaultratings and assigned loss-given-default ratings on these loans andbond debt obligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof its ratings as Moody's research has shown that credit losses onbank loans have tended to be lower than those for similarly ratedbonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Sanford, North Carolina, The Pantry, Inc.operates convenience store chains in the southeastern UnitedStates. As of June 29, 2006, the Company operated 1,499 stores ineleven states under select banners including Kangaroo Express(SM),its primary operating banner.

PILGRIM'S PRIDE: To Reduce Chicken Processing by 5% in January--------------------------------------------------------------Pilgrim's Pride Corp. disclosed it will reduce weekly chickenprocessing by 5% year over year, or approximately 1.3 million headper week, by January 2007 as part of its continuing effort tobetter balance supply and demand amid declining chicken prices andsharply higher costs for corn.

The reduction will begin with eggs set as of Oct. 30, 2006, andwill take effect with weekly processing beginning Jan. 1, 2007.The Company said it intends that the reduction will remain ineffect until average industry margins return to more normalizedlevels.

"The U.S. chicken industry is subject to volatility and there area number of factors impacting near-term market conditions.Although industry dynamics improved in the spring and early summerof 2006, market conditions have weakened over the past few months,as evidenced by a decrease in prices for boneless breast meat andleg quarters, as well as a sharp increase over the past two monthsin the price of corn," said O.B. Goolsby Jr., Pilgrim's Pridepresident and chief executive officer.

"We believe the reduction announced [Sun]day will help to strike abetter balance between production and demand and strengthen ourcompetitive position. As we have said before, reducing overallsupply to better match demand is an important component in helpingreturn the industry to more normalized levels. While the short-term operating environment remains challenging, we are confidentthat continued demand for high-quality, convenient and low-fatmeat proteins will position our Company for profitable long-termgrowth when conditions in the chicken markets improve," added Mr.Goolsby.

Amy Thomson at Bloomberg News disclosed that the company's bid toacquire Gold Kist Inc., will not be affected by the reduction andthat there are no immediate plans to lessen its workforce or thenumber of its factories.

In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. Consumer Products sector, the ratingagency held its Ba2 Corporate Family Rating for Pilgrim's PrideCorp. In addition, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on thecompany's note issues, including an LGD6 rating on its$100 million 9.250% Sr. Sub. Global Notes Due Nov. 15, 2013,suggesting noteholders will experience a 95% loss in the event ofa default.

This the first meeting of creditors required under Section 341(a)meeting of the Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible officer of theDebtor under oath about the company's financial affairs andoperations that would be of interest to the general body ofcreditors.

Based in Pittsfield, New Hampshire, Pittsfield Weaving Company -- -- http://www.pwcolabel.com/-- provides brand identification to the apparel and soft goods industries, and manufactures woven andprinted labels and RFID/EADS solutions. The Company filed itchapter 11 protection on Sept. 20, 2006 (Bankr. D. NH Case No. 06-11214). Williams S. Gannon, Esq., at William S. Gannon PLLCrepresent the Debtor in its restructuring efforts. PittsfieldWeaving estimated its assets and debts at $10 million to$50 million when it filed for protection from its creditors.

PLASTICON INT'L: BUYINS.NET Spots Short Selling of $91.9MM Shares----------------------------------------------------------------- BUYINS.NET, an organization that monitors trading activity in USstocks, has reported that the total aggregate number of PlasticonInternational, Inc.'s shares shorted from January 2005 to October2006 is approximately 1.1 billion shares with an approximate totaldollar value of $91.9 million.

According to BUYINS.NET, the Squeeze Trigger price of $0.0065 isthe volume weighted average short price of all short selling inPLNI. A short squeeze is anticipated when PLNI shares close above$0.0065. SqueezeTrigger prices can be accessed athttp://www.buyins.net/

"It has been our goal to identify and publish the pattern ofbrokers shorting our stock with the failure to deliver shares,"stated Plasticon President and CEO Jim Turek. "Naked shortselling is a financial assault and robs millions of dollars frominvestors as well as the ability for small cap companies tocapitalize their operations. We are distressed by naked shortselling and this practice wrongly influences the market. Ourprimary focus right now is to restore shareholder value andconfidence in Plasticon International, Inc."

Plasticon International, Inc. was on the OTC Naked Short Thresholdlist in January and in February of 2005. At the conclusion ofeach settlement day, data was provided on securities in whichthere were at least 10,000 shares in aggregate failed deliveriesfor five consecutive settlement days. The failures were to haveconstituted at least 0.5% of the issuer's total sharesoutstanding. The Securities Exchange Act of 1934 mandates that ifa clearing agent has had a fail-to-deliver position for 13consecutive settlement days, that clearing agent and thebroker/dealer it clears for must purchase securities to close outits fail to deliver position.

PROCESS CAPITAL: Plans to Construct Waste Oil Refinery in Kingston------------------------------------------------------------------Process Capital Corp. has agreed to sell up to 51,500,000 units ata price of $0.05 per unit for total proceeds of up to $2,575,000,as of the Oct. 24, 2006, and subject to TSX Venture Exchangeapproval and the receipt of any required regulatory consents.Each unit will consist of one common share of the company, and oneshare purchase warrant, with each full warrant entitling theholder to acquire one common share of the Company, at a price of$0.10 for a period of 18 months from the date of issuance.

The company has signed a letter agreement with EnviroMatrixTechnologies Inc., a private Ontario corporation, whereinEnviroMatrix agreed, subject to the terms and conditions of theletter agreement, to subscribe for a total of up to 35,500,000units for total proceeds of up to $1,775,000. Harris Brown &Partners Limited acted as Advisor to EnviroMatrix on thistransaction.

H. John Stollery, together with other members of the managementteam and directors of the Company have indicated their intentionto subscribe for up to 16,000,000 units for total proceeds of upto $800,000. The common shares and warrants acquired under thesetransactions will be subject to a 4-month hold period.

As some of the subscribers to these private placements areinsiders of the Company, the Company is required to comply withPolicy 5.9 of the Exchange (Insider Bids, Going PrivateTransactions and Related Transactions), which incorporates OntarioSecurities Commission Rule 61-501, unless there is an exemptionavailable. The Company expects to rely upon the Financial HardshipExemption with respect to these private placements.

The Private Placement is expected to be completed in one or moretranches, with an initial tranche of up to 13,000,000 units, withhhhmproceeds of up to $650,000. Funds from the initial tranchewill be used by the Company to pay existing debt of the Company,costs associated with the Private Placement, and provide workingcapital to the Company. The company to pay existing debt and tocommence construction of a new commercial 30 million liter micro-refinery to be built at the Company's site in Kingston, Ontario,will use funds from subsequent tranches. This will replace thecurrent 8 million liter pilot plant that was developed and used totest and confirm the technology.

Immediately upon completion of the Private Placements, the Companyintends to engage Colt Engineering to begin work on the new plantand to de-commission the current pilot plant. Management expectsit will take 15 months to put the new refinery into commercialoperation.

In addition to the private placements, EnviroMatrix has committedto use its best efforts to arrange, subject to Exchange approval,and the receipt of any necessary regulatory approvals, additionalfinancing for the Company, by way of convertible debentures of upto $3,000,000 and a first mortgage in the amount of up to$3,657,000 for a total amount of up to $6,637,500 to enable theCompany to complete construction of the new plant facility. Ithas been agreed that the Additional Financing will not bearinterest at a rate greater than 12% per annum, and must be onreasonable terms, with respect to commissions and/or other termsacceptable to the Board of the Company.

EnviroMatrix has agreed to commit a minimum of $500,000 and act aslead investor in the Debenture Offering. Final terms of theDebenture Offering have not been established at this time.

While Process Capital Corp. will own the new micro-refinery, ithas granted to EnviroMatrix, as additional consideration for theprivate placements and for raising, at a minimum, $5 million ofthe Additional Financing, the exclusive rights to build and/orsell these micro-refineries throughout North America for a 10 yearperiod. For each plant that is constructed in North America,Process Capital Corp. will receive a fee of $500,000 and a royaltyof $0.02 per liter on all diesel fuel sold. Process will retainthe rights to develop and sell these plants throughout the rest ofthe world, except for China. Dr. Yu, the inventor of thetechnology, and a consultant to Process Capital Corp, has retainedthe rights to China.

If EnviroMatrix is unable to provide this Additional Financingwithin 12 months, it will result in EnviroMatrix being obligatedto offer to sell up to 30,000,000 common shares owned by it to H.John Stollery for a buyer to be determined at a price of $0.035for a period of six months, and the rights granted to EnviroMatrixto build and/or sell these micro-refineries throughout NorthAmerica for a 10-year period will be revoked.

There are currently 77,472,574 common shares and 24,451,111 commonshare purchase warrants of the Company, which are issued andoutstanding. The price of the Company's common shares as at theclose of business on Oct. 23, 2006, the day prior to thisannouncement was $0.03 per share.

Richard C. Ford, who has been with the Company since 1987, hasstepped down as chief executive officer as of Oct. 23, 2006.Mr. Ford will remain on the board of directors as vice-chairmanand will focus on developing specific and targeted accounts withinthe Company.

Mr. Ford stated, "After serving almost 20 years at the helm ofPuradyn, it's in the best interests of the Company to effect achange. I'm now able to promote the product without the dailyobligations of directing a public company. Joe Vittoria is highlyrespected in the business arena; given his successful track recordand knowledge of the product and Company, he's the ideal person totake the reins as Chairman and CEO."

The Company disclosed that Mr. Vittoria has an extensive businessbackground that includes serving as Chairman and chief executiveofficer of Avis, Inc. for ten years. He negotiated the managementacquisition of Avis in 1986 and one year later converted Avis tothe then-largest Employee Stock Option Plan ever established. In1997, Mr. Vittoria coordinated the sale of the Avis ESOP andretired. Several months later, he helped create Travel ServicesInternational, Inc. leading an immediate IPO at its founding andlater selling the Company to a large British tour operator.Mr. Vittoria also serves on the boards of Autoeurope, Inc. andFlexcar, Inc.

Mr. Vittoria concluded, "As a show of confidence in where theCompany is positioned at this time, we have both chosen not toreceive any salaries. As Richard and I are major stockholders,our compensation will be linked to long-term share performance forthe benefit of all our stockholders." Messrs. Vittoria and Fordown 2,878,536 million shares, or 11.4%, and 3,225,651 millionshares, or 12.7%, respectively, of the Company's outstandingcommon shares.

puraDYN Filter Technologies, Inc., -- http://www.puradyn.com/-- designs, manufactures and markets the puraDYN(R) Bypass OilFiltration System. The Company's patented and proprietary systemis effective for internal combustion engines, transmissions andhydraulic applications. The Company has established aftermarketprograms with Volvo Trucks NA, Mack Trucks, PACCAR; and made astrategic alliance with Honeywell Consumer Products Group,producers of FRAM(R) filtration products. puraDYN(R) equipmenthas been certified as a 'Pollution Prevention Technology' by theCalifornia Environmental Protection Agency and was selected as themanufacturer used by the U.S. Department of Energy in a three-yearevaluation to research and analyze performance, benefits, and costanalysis of bypass oil filtration technology.

Going Concern Doubt

DaszkalBolton LLP in Boca Raton, Fla., raised substantial doubtabout puraDYN Filter Technologies, Inc.'s ability to continue as agoing concern after auditing the Company's consolidated financialstatements for the year ended Dec. 31, 2005. The auditor pointedto the Company's recurring operating losses, stockholders'deficit, and reliance on cash inflows from an institutionalinvestor and current stockholder.

RADIANT ENERGY: Closes 12% Debentures Conversion with GE Capital----------------------------------------------------------------Radiant Energy Corporation disclosed significant progress in theCompany's debt reduction program. The Company and GeneralElectric Capital Corporation completed the settlement of a 12%unsecured debenture in exchange for common shares and the transferof other assets to Radiant.

12% Unsecured Debentures Conversion

The principal of US$250,000 was converted into 1,793,400 commonshares (approximately CDN$0.25 per share) and the accrued interestequal to US$150,312 was written off. The net affect on after-taxprofits to Radiant is a gain of approximately US$320,000. Thecommon shares cannot be sold, transferred or hypothecated orotherwise traded in Canada until Jan. 11, 2007. The ownership ofthe deicing facility in operations at Newark Liberty InternationalAirport and an unassembled structure, heating units, control boothand other miscellaneous parts were transferred to Radiant at nocost from GECC.

Debt Reduction Program

As at July 31, 2006 the Company had US$16.8 million of debtoutstanding. The exchange of the 12% debenture for common sharesreduced the debt by $400,313. In September, the Company, GECC andthree insiders being significant shareholders signed agreementswhereby insiders of Radiant purchased the outstanding securedloans, including accrued interest equal to $5.3 million from GECC.The three shareholders completed an agreement with Radiant towrite-off US$3.6 million of the debt in exchange for the Companyto grant a conversion feature on the remaining US$1.75 million ofdebt into 13,300,000 common shares of Radiant. The net affect onafter-tax profits is a gain of US$2.9 million and a reduction indebt of $3.6 million. The transaction is subject to acceptance bythe TSX Venture Exchange. The Company received payment from acustomer that allowed the company to reduce the debt by a further$1.0 million.

The Company also extended an offer to the three 7.75% Series ADebenture holders to convert a total US$708,000 in principal andaccrued interest outstanding into 3,228,442 common shares(approximately CDN$0.25 per share).

The MD&A originally filed on May 8, 2006, for the year endedOct. 31, 2005, was re-filed to include the section on DisclosureProcedures and Controls. On October 23, 2006, the Companyre-filed Certificate 52-109F2 for the CEO and CFO for the interimperiods ended Jan. 31, 2006 and April 30, 2006. The Company wasrequired to re-file the Certificates in a format acceptable tothe Ontario Securities Commission.

Radiant has 60,985,217 common shares outstanding after thetransaction. The InfraTek Radiant Deicing System, the only FAA-approved for use, non-glycol based alternative to the conventionalpre-flight ground deicing process. InfraTek offers substantialsavings to airports and airlines by reducing treatment costs andby significantly reducing the negative environmental impact ofglycol. The InfraTek Radiant Energy Deicing System is in use atNewark International Airport, and Rhinelander-Oneida CountyAirport, Wisconsin, with facilities recently installed or about toopen at JFK Airport, New York and Oslo, Norway.

About Radiant Energy

Based in Port Colborne, Ontario, Radiant Energy Corporation (TSX:RDT) -- http://www.radiantenergycorp.com/-- through its wholly owned subsidiary Radiant Aviation Services developed and sells theonly infrared alternative to traditional glycol-based aircraftdeicing. Its fully patented InfraTek(R) systems are approved foruse by the FAA. Prior to the introduction of InfraTek, sprayingwith glycol was the only feasible method to satisfy FAA safetyguidelines for ensuring that aircraft are properly deiced prior totake-off.

At July 31, 2006, the Company's balance sheet showed astockholders' deficit of $12,093,699, compared to a deficit of$11,269,492 at Oct. 31, 2005.

RBS GLOBAL: Moody's Assigns Loss-Given-Default Rating----------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for RBS Global Inc., aswell as the Caa1 rating on the company's $300 million 11.75%Senior Subordinate Notes due 2016 LGD6, 91%. Those debentureswere assigned an LGD6 rating suggesting noteholders willexperience a 91% loss in the event of default.

Additionally, Moody's revised or held its probability-of-defaultratings and assigned loss-given-default ratings on these loans andbond debt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

RED HAT: Launches $325 Mil. Stock and Debenture Repurchase Program------------------------------------------------------------------Red Hat, Inc.'s Board of Directors has authorized a $325 millionStock and Debenture Repurchase Program. Under the program, theCompany is authorized to repurchase in aggregate up to $250million of the Company's common stock and in aggregate up to$75 million of the Company's 0.5% Convertible Senior Debenturesdue 2024. Repurchases of common stock and Convertible Debenturesmay be effected, from time to time, either on the open market orin privately negotiated transactions, as applicable.

Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware,applications and management solutions. Red Hat also offerssupport, training, and consulting services to its customersworldwide and through top-tier partnerships.

The revision comes after Oracle Corp. (A-/Stable/A-1) announcedplans to offer support services for Red Hat's Linux customers, atthe enterprise level, at a steep discount to Red Hat's prices.While the near-term impact on Red Hat's profitability is likely tobe limited, in the best case, upgrade prospects have been pushedout until the impact of Oracle's competitive move can be betterassessed.

"If the company is able to blunt Oracle's impact and realizeincreased profitability from current levels, as well as improvefinancial leverage, we could revise the outlook back to positive.However, if Oracle has a significant competitive impact and salesmomentum stalls and pricing pressures mount, the outlook could berevised to negative," Standard & Poor's credit analyst StephanieCrane said.

REDDY ICE: Moody's Assigns Loss-Given-Default Rating---------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B1 Corporate Family Rating for Reddy Ice HoldingsInc., as well as revised the rating on the company's $151 million10.5% Senior Disc. Notes due 2012. Those debentures were assignedan LGD5 rating suggesting noteholders will experience an 89% lossin the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on the loans and bond debtobligations of the company's subsidiary Reddy Ice Group Inc.:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Dallas, Texas, Reddy Ice Holdings Inc.manufacture and distributes packaged ice in the United States.

RENT-A-CENTER: Moody's Assigns Loss-Given-Default Ratings---------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the US and Canadian Retail sector, the ratingagency confirmed its Ba2 Corporate Family Rating for Rent-A-Center, Inc.

Additionally, Moody's revised and held its probability-of-defaultratings and assigned loss-given-default ratings on these loans andbond debt obligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Rent-A-Center, Inc, with headquarters in Plano, Texas operates thelargest chain of consumer rent-to-own stores in the U.S. with2,749 company operated stores located in the U.S., Canada, andPuerto Rico. Rent-A-Center also franchises 295 rent-to-own storesthat operate under the "ColorTyme" and "Rent-A-Center" banners.Revenue for the twelve months ending June 2006 was about $2.3million. The company will add 784 stores and sales of more than$500 million with the pending Rent-Way acquisition.

RESORTS INT'L: Prepayments Cue Moody's to Withdraw Junk Ratings---------------------------------------------------------------Moody's Investors Service withdrew Resorts International Holdings,LLC's ratings following the cancellation of its $75 million firstlien revolver and prepayment of its $625 million first lien termloan and $350 million second lien term loan.

REVERE INDUSTRIES: Moody's Assigns Loss-Given-Default Rating------------------------------------------------------------ In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for Revere IndustriesLLC, as well as the Caa1 rating on the company's $60 millionGraduated Second Lien Term Loan. Those debentures were assignedan LGD5 rating suggesting noteholders will experience a 78% lossin the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

ROOMLINX INC: Posts $609,774 Net Loss in Qtr. Ended Sept. 30------------------------------------------------------------RoomLinx, Inc., has filed its third quarter financial statementsfor the quarter ended Sept. 30, 2005 with the Securities andExchange Commission and is making progress towards being fully SECcompliant by the end of the fourth quarter.

The company reported a $609,774 net loss on $637,685 revenues forthe quarter ended Sept. 30, 2005, compared to a $712,951 net losson $624,186 revenues for the third quarter in 2004.

As Sept. 30, 2006, the company's balance sheet showed $2,283,590in total assets and $3,950,140 in total liabilities, resulting ina $1,666,550 total stockholders' deficit.

The company's balance sheet also showed strained liquidity with$487,544 in total current assets available to pay $3,950,140 intotal current liabilities.

* the Adversary Proceeding commenced by Santa Fe against BEPCO, LP fka Bass Enterprises Production Company seeking preliminary and permanent declaratory and injunctive relief that the "alter-ego" and "single business enterprise" claims are property of Santa Fe's estate and that Bass has violated the automatic stay in its efforts to assert the claims and must be enjoined from taking any actions to assert the claims;

* the continued investigation into and possible efforts to realize insurance assets covering claims against the Debtors; and

* other litigation matters in the bankruptcy cases.

Richard S. Pabst, Esq., a partner at Kean Miller, discloses thatthe firm will bill for services rendered at its regular hourlyrates and will bill for expenses.

Mr. Pabst assures the Court that the firm is a "disinterestedperson" as the term is defined in Section 101(14) of theBankruptcy Code and does not hold or represent any interestadverse to the Debtors' estates.

About Santa Fe Minerals

Headquartered in Houston, Texas, 15375 Memorial Corporation is thesole shareholder of Santa Fe Mineral, Inc. Santa Fe Minerals is aWyoming based corporation dissolved in 2000. Under Wyoming law,creditors of a dissolved corporation can recover their debts fromthe dissolved corporation's shareholders, up to the value of theassets that each shareholder received at the dissolution.

15375 Memorial and Santa Fe Minerals filed for chapter 11protection on Aug. 16, 2006 (Bankr. D. Del. Case No. 06-10859 &06-10860). When the Debtors filed for protection from theircreditors, they estimated their assets between $100,000 to$500,000 and liabilities of more than $100 million.

SEA CONTAINERS: Can Assign Priority Status to Intercompany Claims-----------------------------------------------------------------The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for theDistrict of Delaware grants, on an interim basis, Sea Containers,Inc. and its debtor-affiliates' request to accord administrativepriority expense status to all Intercompany Claims against aDebtor by another Debtor arising after the Petition Date as aresult of an Intercompany Transaction, pursuant to Sections503(b)(1) and 364(b) of the Bankruptcy Code.

Judge Carey grants the Debtors' request for 30 days, to ensurethat each individual Debtor will not fund, at the expense of itscreditors, the operations of another entity.

In the normal operations of their business, the Debtors engage inintercompany transactions involving intercompany trade andintercompany cash and capital needs.

As a result, there are numerous intercompany claims that reflectintercompany receivables and payments made in the ordinary courseof the Debtors' businesses. These Intercompany Transactionsinclude, but are not limited to expense allocation and advances.

At any given time, there may be Intercompany Claims owing amongthe Debtors. The Debtors maintain records of all IntercompanyTransactions and can ascertain, trace and account for allIntercompany Transactions.

If postpetition Intercompany Claims are accorded administrativepriority expense status, each entity will continue to bearultimate repayment responsibility for those ordinary coursetransactions, Robert D. MacKenzie, president and chief executiveofficer of Sea Containers, Ltd., and a director of Sea ContainersServices, Ltd., says.

About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda,the company has regional operating offices in London, Genoa, NewYork, Rio de Janeiro, Sydney, and Singapore. The company isowned almost entirely by United States shareholders and itsprimary listing is on the New York Stock Exchange (SCRA andSCRB) since 1974. On Oct. 3, the company's common shares andsenior notes were suspended from trading on the NYSE and NYSEArca after the company's failure to file its 2005 annual reporton Form 10-K and its quarterly reports on Form 10-Q during 2006with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transportoperates Britain's fastest railway, the Great North EasternRailway, linking England and Scotland. It also conducts ferryoperations, serving Finland and Estonia as well as a commuterservice between New York and New Jersey in the U.S.

SEA CONTAINERS: Can Continue Using Existing Business Forms----------------------------------------------------------Sea Containers, Inc. and its debtor-affiliates obtained authorityfrom the Honorable Kevin J. Carey of the U.S. Bankruptcy Court forthe District of Delaware to continue to use all correspondence,business forms, and checks existing immediately before theDebtors' filing of the petition without reference to their statusas a debtor-in-possession.

Robert D. MacKenzie, president and chief executive officer of SeaContainers, Ltd., and a director of Sea Containers Services,Ltd., points out that parties doing business with the Debtorswill undoubtedly be aware of the Debtors' status as a debtor-in-possession as a result of the size and publicity surrounding thecases, the press releases issued by the Debtors, and other presscoverage.

If the Debtors were required to change their correspondence,business forms, and checks, Mr. MacKenzie says, the Debtors wouldbe forced to choose standard forms rather than current forms withwhich the Debtors' employees, customers and vendors are familiar.

A change in operations would create a sense of disruption andpotential confusion within the Debtors' organization andconfusion for the Debtors' customers and vendors, Mr. MacKenzieasserts.

The Debtors believe that it would be costly and disruptive tocease using all existing forms and to purchase and begin usingnew stationery, business forms, and checks.

About Sea Containers

Headquartered in Hamilton, Bermuda, Sea Containers Ltd. --http://www.seacontainers.com/-- provides passenger and freight transport and marine container leasing. Registered in Bermuda,the company has regional operating offices in London, Genoa, NewYork, Rio de Janeiro, Sydney, and Singapore. The company isowned almost entirely by United States shareholders and itsprimary listing is on the New York Stock Exchange (SCRA andSCRB) since 1974. On Oct. 3, the company's common shares andsenior notes were suspended from trading on the NYSE and NYSEArca after the company's failure to file its 2005 annual reporton Form 10-K and its quarterly reports on Form 10-Q during 2006with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transportoperates Britain's fastest railway, the Great North EasternRailway, linking England and Scotland. It also conducts ferryoperations, serving Finland and Estonia as well as a commuterservice between New York and New Jersey in the U.S.

SEARS CANADA: Moody's Assigns Loss-Given-Default Ratings--------------------------------------------------------In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. and Canadian retail sector, the ratingagency confirmed its Ba1 Corporate Family Rating for Sears Canada,Inc. Additionally, Moody's revised or held its probability-of-default ratings and assigned loss-given-default ratings on theseloans and bond debt obligations:

Moody's explains that current long-term credit ratings areopinions about expected credit loss, which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody'salpha-numeric scale. They express Moody's opinion of thelikelihood that any entity within a corporate family will defaulton any of its debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

The certificates are supported by two collateral groups. Group Iconsists of mortgage loans with principal balances that conform toFannie Mae and Freddie Mac guidelines. Group II consists of allother remaining mortgage loans. The group I mortgage poolconsists of adjustable-rate and fixed-rate, first and second lienmortgage loans with a cut-off date pool balance of $220,770,640.Approximately 23.66% of the mortgage loans are fixed-rate mortgageloans, 76.34% are adjustable-rate mortgage loans and 9.90% aresecond lien mortgage loans. The weighted average loan rate isapproximately 8.191%. The weighted average remaining term tomaturity is 338 months. The average principal balance of theloans is approximately $143,172. The weighted average combinedloan-to-value ratio is 81.68%. The properties are primarilylocated in California (21.79%), Florida (9.16%) and Illinois(8.41%).

The group II mortgage pool consists of adjustable-rate and fixed-rate, first and second lien mortgage loans with a cut-off datepool balance of $780,185,416. Approximately 21.06% of themortgage loans are fixed-rate mortgage loans, 78.94% areadjustable-rate mortgage loans and 11.90% are second lien mortgageloans. The weighted average loan rate is approximately 8.213%.The WAM is 335 months. The average principal balance of the loansis approximately $215,521. The weighted average CLTV is 82.56%.The properties are primarily located in California (48.81%),Florida (10.14%) and New York (7.01%).

WMC is a mortgage banking company incorporated in the State ofCalifornia. WMC was owned by a subsidiary of Weyerhaeuser Companyuntil May 1997 when it was sold to WMC Finance Co., a companyowned principally by affiliates of Apollo Management, L.P., aprivate investment firm. On June 14, 2004, GE Consumer Financeacquired WMC Finance Co.

For federal income tax purposes, multiple real estate mortgageinvestment conduit elections will be made with respect to thetrust estate.

SENSATA TECHNOLOGIES: Moody's Assigns Loss-Given-Default Rating--------------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for Sensata TechnologiesB.V., as well as the Caa1 rating on the company's $301.6 millionof Senior Subordinate Notes Due 2016. Those debentures wereassigned an LGD6 rating suggesting noteholders will experience a93% loss in the event of default.

Additionally, Moody's revised or held its probability-of-defaultratings and assigned loss-given-default ratings on these loans andbond debt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Attleboro, Massachusetts, Sensata Technologies isa supplier of sensors and controls across a range of markets andapplications. http://www.sensata.com/

SENSUS METERING: Moody's Assigns Loss-Given-Default Rating---------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for Sensus MeteringSystems Inc., as well as revised the rating on the company's$275 Million 8.625% Senior Subordinate Notes due 2013 to B3 fromCaa1. Those debentures were assigned an LGD5 rating suggestingnoteholders will experience a 77% loss in the event of default.

Additionally, Moody's revised or held its probability-of-defaultratings and assigned loss-given-default ratings on these loans andbond debt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in Raleigh, North Carolina, Sensus Metering SystemsInc. is a provider of metering and Automatic Meter Reading (AMR)solutions for water, gas, electric, and heat utilities as well assub-metering entities worldwide. http://www.sensus.com/

SKYEPHARMA PLC: Aviva Acquires 5.53% of Issued Share Capital------------------------------------------------------------SkyePharma PLC in a regulatory filing with the Securities andExchange Commission on Oct. 25, 2006, disclosed that Aviva PLC andits subsidiaries had acquired a beneficial interest in 20,802,221ordinary shares in which it had previously held a non-beneficialinterest.

Accordingly, Aviva now has a beneficial interest in a total of41,713,719 ordinary shares, representing 5.53% of the issued sharecapital of the Company.

As reported in the Troubled Company Reporter on Aug. 1, 2006,PricewaterhouseCoopers LLP in London raised substantial doubtabout Skyepharma PLC's ability to continue as a going concernafter auditing the company's financial statements for the yearended Dec. 31, 2005. The auditing firm pointed to the uncertaintyas to when Skyepharma's certain strategic initiatives may beconcluded and their effect on the company's working capitalrequirements.

SPX CORPORATION: Moody's Assigns Loss-Given-Default Rating---------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Ba1 Corporate Family Rating for SPX Corporation, aswell as the Ba2 rating on the company's 7.50% Senior Notes due2013. Those debentures were assigned an LGD6 rating suggestingnoteholders will experience a 96% loss in the event of default.

Additionally, Moody's held its probability-of-default ratings andassigned loss-given-default ratings on these loans and bond debtobligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

STARTECH ENVIRONMENTAL: Earns $337,902 in Quarter Ended July 31---------------------------------------------------------------Startech Environmental Corp. has filed its financial statementsfor the third quarter ended July 31, 2006 with the Securities andExchange Commission.

After posting losses in the first two quarters, StartechEnvironmental reversed the trend and reported a $337,902 netincome on $286,131 revenues for the three month period ended July31, 2006, compared to a $845,014 net loss on $96,064 revenues forthe third quarter in 2005. The company's accumulated deficit atJuly 31, 2006 stood at $28,964,606.

The company's balance sheet at July 31, 2006 showed $5,654,104 intotal assets, $3,191,048 total liabilities and $2,463,056 in totalstockholders' equity.

As reported in the Troubled Company Reporter on Mar. 31, 2006,Marcum & Kliegman LLP expressed substantial doubt about thecompany's ability to continue as a going concern after auditingthe company's financial statements for the year ended Oct. 31,2005. The auditing firm pointed to the Company' recurring lossessince its inception.

About Startech Environmental

Headquartered in Wilton, Connecticut, StarTech EnvironmentalCorporation is an environmental technology company commercializingits proprietary plasma processing technology known as the PlasmaConverter(TM) that achieves closed-loop elemental recycling whichirreversibly destroys hazardous and non-hazardous waste andindustrial by-products while converting them into usefulcommercial products. These products include a rich synthesis gascalled PCG (Plasma Converted Gas)(TM) surplus energy for power,hydrogen, metals and silicates for use and for sale.

SUN MICROSYSTEMS: Posts $56 Million Net Loss in Fiscal 1st Quarter------------------------------------------------------------------Sun Microsystems, Inc., incurred a $56 million net loss for itsfiscal first quarter ended Oct. 1, 2006, compared with a net lossof $123 million for the first quarter of fiscal 2006.

Net loss for the first quarter of fiscal 2007 included: $21million of restructuring and related impairment of asset chargesand a $7 million benefit for related tax effects, $58 million ofstock-based compensation charges and $79 million of intangibleasset amortization relating to recent acquisitions.

Revenues for the first quarter of fiscal 2007 were $3.189 billion,an increase of 17% as compared with $2.726 billion for the firstquarter of fiscal 2006. Year over year revenue increase resultedfrom both acquisitions and increasing acceptance of the Solaris 10Operating System, as well as growth in the services business.Computer Systems Products revenues increased 15% year over year,the third consecutive quarter of year over year revenue increase.

Cash generated from operations for the first quarter was$157 million, and cash and marketable debt securities balance atthe end of the quarter was $4.671 billion.

"It's great to grow faster than the competition, maintain stronggross margins and see continued adoption of Solaris on HP, Delland IBM computers," said Jonathan Schwartz, CEO of SunMicrosystems. "Customers across the world are turning to Sun asthe safe choice for open source innovation, for industry leadingidentity and security management platforms and for the most eco-responsible infrastructure to power the network."

SUPERIOR ESSEX: Moody's Assigns Loss-Given-Default Rating--------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for Superior EssexCommunications LLC, as well as the B3 rating on the company's$257.1 Million 9.% Senior Unsecured Notes due 2012. Thosedebentures were assigned an LGD5 rating suggesting noteholderswill experience a 76% loss in the event of default.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

The company reported a $167,000 net loss on $604,000 totalinterest income for the second quarter ended June 30, 2006,compared to a $480,000 net loss on $927,000 total interest incomefor the second quarter in 2005.

Payne Falkner Smith & Jones, P.C., expressed substantial doubtabout Surety Capital Corporation's ability to continue as a goingconcern after it audited the Company's financial statements forthe fiscal year ended Dec 31, 2005. The auditing firm pointed tothe Company's recurring losses. The Company is operating under awritten agreement with the Federal Reserve Bank, and the Company'ssubsidiary is operating under a determination letter with theTexas Department of Banking.

About Surety Capital

Surety Capital Corporation is the holding company of its whollyowned subsidiary, Surety Bank. The Bank has full service officesin Converse, Fort Worth, New Braunfels, San Antonio, Schertz,Universal City, and Whitesboro, Texas.

The Company has reached an agreement with its lenders replacingTOUSA's existing $800 million unsecured revolving credit facilitywith an amended $800 million secured revolving credit facilitythat increases the Company's current borrowing capacity andprovides additional liquidity on a pro-forma basis. There are nochanges to the existing terms or pricing. The amendment processwas initiated as a result of a material adverse change in one ofTOUSA's guarantor subsidiaries, which holds the Company'sinvestment in the Transeastern joint venture.

Third Quarter Results

TOUSA also reported consolidated net sales orders of 1,470 forthe quarter ended Sept. 30, 2006, a 19% decrease from the 1,821consolidated net sales orders reported in the quarter endedSept. 30, 2005. Joint venture net sales orders for the thirdquarter of 2006 were 125, an 86% decrease from the 871 net salesorders reported in the third quarter of 2005. TOUSA'sconsolidated cancellation rate was 33% for the third quarter of2006 compared to 20% for the third quarter of 2005. TOUSA'scombined cancellation rate for the third quarter of 2006 was 44%compared to 18% for the third quarter of 2005.

The Company expects a pre-tax charge in the range of $35 millionto $48 million for the third quarter of 2006 related to landdeposit write-offs and asset impairment charges, excluding theimpact of the Transeastern joint venture, based on reviewscurrently in process and not yet completed.

TOUSA is currently assessing impairment charges related tothe Transeastern joint venture and expects to announce thesecharges in its third quarter earnings announcement. As statedon Sept. 29, 2006, a pre-tax charge of $141 million could berequired should TOUSA determine that its investment andreceivables are impaired.

Headquartered in Hollywood, Florida, Technical Olympic USA, Inc.(NYSE:TOA) -- http://www.tousa.com/-- is a homebuilder in the United States, operating in various metropolitan markets in 10states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA designs, builds, and marketshigh-quality detached single-family residences, town homes, andcondominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who arerelocating to a new city or state, buyers of second or vacationhomes, active-adult homebuyers, and homebuyers with grown childrenwho want a smaller home. It also provides financial services toits homebuyers and to others through its subsidiaries, PreferredHome Mortgage Company and Universal Land Title, Inc.

* * *

As reported in the Troubled Company Reporter on Oct. 26, 2006,Moody's Investors Service lowered the rating on the seniorunsecured notes of Technical Olympic USA, Inc. to Ba3 from Ba2 andthe LGD assessment and rate to LGD4, 53% from LGD3, 35% due tochanges in the priority of claim in the company's capitalstructure. TOA changed its $800 million revolving credit facilityto secured from unsecured.

On Oct. 23, 2006, the company replaced its existing $800 millionunsecured revolving credit facility with an amended $800 millionsecured revolving credit facility. The amendment process wasinitiated as a result of a material adverse change in one of TOA'sguarantor subsidiaries which solely holds the company's investmentin the Transeastern joint venture. In addition to grantingsecurity to the revolving credit facility lenders, the amendmentto the credit agreement included a change in the definition ofmaterial adverse change, changes to the borrowing base, andrestrictions on TOA's ability to make additional investments inthe Transeastern joint venture without consent of the requiredlenders.

On Sept. 28, 2006, Fitch placed TOA's ratings on Rating WatchNegative due to the severe slowdown in Technical Olympic's majormarkets and financial difficulties being experienced by thecompany's large Transeastern joint venture. Fitch continues tomonitor pending asset impairment charges relating to TOA'sinvestment in the Transeastern JV and potential peripheral legalaction that may arise from the restructuring of the TranseasternJV. The company is currently assessing impairment charges relatedto the Transeastern JV. As previously announced, a pre-tax chargeof $141 million could be required ($89 million after tax) shouldTOA determine that its investment and receivables are impaired.The Rating Watch will in part be resolved by the ability of theTranseastern joint venture to execute a successful refinancingand/or restructuring without further meaningful support fromTechnical Olympic. In this currently challenging environment,management of the balance sheet and cash flow generation will alsobe taken into account as to the Watch status.

Fitch anticipates that Technical Olympic will take a more cautiousstance on land purchases during the balance of the year (and in2007) and that inventories, which have been growing into mid-2006,will decline by fiscal year-end 2006. Fitch anticipates thatliquidity will improve as cash flow comparisons in the second halfof 2006 should be much stronger that in the first half of theyear.

Fitch will also continue to closely monitor the trends of thebroad housing market in its assessment of the appropriate creditratings for all homebuilders.

THERMADYNE HOLDINGS: Moody's Assigns Loss-Given-Default Rating-------------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Caa1 Corporate Family Rating for Thermadyne HoldingsCorporation, as well as the Caa2 rating on the company's $175Million 9.25% Senior Subordinate Notes due Feb. 1, 2014. Thosedebentures were assigned an LGD5 rating suggesting noteholderswill experience a 73% loss in the event of default.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Headquartered in St. Louis Missouri, Thermadyne HoldingsCorporation -- http://www.thermadyne.com/-- is a multi-national manufacturer of welding and cutting products.

TIMKEN CO: Earns $46 Million in the Third Quarter of 2006---------------------------------------------------------The Timken Company reported sales of $1.27 billion in the thirdquarter of 2006, up slightly from $1.25 billion for the sameperiod in 2005. Strong sales in industrial markets were largelyoffset by significant declines in automotive markets.

The company achieved third-quarter net income of $46 million, upfrom $39 million, in last year's third quarter.

Special items in the third quarter of 2006 included manufacturingrestructuring and rationalization charges that totaled$7.1 million of pretax expense, compared to $28.3 million in thesame period a year ago.

"Our industrial and steel businesses performed well in the thirdquarter with industrial markets continuing to drive strong demandfor our products," James W. Griffith, president and chiefexecutive officer, said. "Dramatic volume reductions are posingsignificant challenges across the North American automotivemarket. We are taking actions to adapt to the decline in demandand will continue to pursue structural changes to bring ourAutomotive business to profitability."

For the first nine months of 2006, sales were $4 billion, anincrease of 3% from $3.8 billion for the same period in the prioryear. Net income for the first nine months of 2006 was$187 million, versus $165 million for the comparable nine-monthperiod in 2005.

Special items in the first nine months of 2006 totaled $32.9million of pretax expense, compared to $33.1 million in the sameperiod a year ago, and included manufacturing, restructuring andrationalization charges and the impact of asset dispositions.

Total debt was $752.8 million as of Sept. 30, 2006, or 30.7% ofcapital. Net debt at Sept. 30, 2006, was $698.7 million, or 29.2%of capital, compared to $655.6 million, or 30.5% of capital, as ofDec. 31, 2005.

The Industrial Group had third-quarter sales of $501.8 million, up7% from $468.2 million for the same period last year. The companycontinued to benefit from strong demand across its broadindustrial segments, led by increases in the aerospace, industrialdistribution and heavy industry segments.

The Company continues to make investments in Asia and key globalindustrial markets, including construction of the company's fifthmanufacturing facility in China, opening of a global aerospacefacility in Arizona and introduction of a new line of large-boreseals.

For the first nine months of 2006, Industrial Group sales were$1.5 billion, up 7 percent over the same period a year ago. EBITfor the first nine months of 2006 was $157.6 million, compared toEBIT of $158.1 million over the prior-year period.Automotive Group Results

The Automotive Group's third-quarter sales of $363.6 million were11% below the same period a year ago. The decline in sales wasthe result of significant reductions in vehicle production byautomakers headquartered in North America.

The Automotive Group recorded a third-quarter loss of$26.3 million, compared to a loss of $6 million for the sameperiod a year ago. In response to the recent drop in demand, theCompany announced in September 2006 the reduction of 700 positionsfrom its Automotive Group, which is expected to result in savingsof approximately $35 million, to be fully realized by the middleof 2007, at a cost of approximately $25 million. The program isin addition to the automotive restructuring plan disclosed inJuly 2005, which has targeted savings of approximately $40 millionby the end of 2007. The company anticipates taking additionalactions to structurally improve the performance of the business.

For the first nine months of 2006, Automotive Group sales of$1.2 billion were 3% below the same period last year. The grouprecorded a loss of $31.4 million for the first nine months of2006, compared to a loss of $12.4 million in the first nine monthsof 2005.

Steel Group third-quarter sales were $442.6 million, a 3% increasefrom $427.9 million in the same period a year ago.

During the quarter, the Steel Group disclosed an investment in anew induction heat-treat line that will increase the Company'scapacity and ability to provide differentiated products to morecustomers in important global energy markets. In addition, thegroup recently disclosed its intention to exit its Europeanseamless steel tube manufacturing operation as part of itsstrategy to strengthen its business portfolio.

For the first nine months of 2006, Steel Group sales were$1.4 billion, a 3% increase over the first nine months of lastyear.

Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR)-- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides relatedcomponents and services such as bearing refurbishment for theaerospace, medical, industrial and railroad industries. TheCompany has operations in 27 countries and employs 27,000employees.

TIMKEN CO: Moody's Assigns Loss-Given-Default Rating---------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Ba1 Corporate Family Rating for The Timken Company,as well as the Ba1 rating on the company's $300 Million UnsecuredMedium Term Notes Series A due 2028. Those debentures wereassigned an LGD3 rating suggesting noteholders will experience a46% loss in the event of default.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Type of Business: TJT Properties, LLC owns two commercial properties in Kennesaw and Acworth, Georgia. The properties are leased to LTT1 Services, LLC, which operates two automobile repair facilities under the name Meineke Car Care Center.

LTT1 Services recently defaulted on one month's rent which has caused financial hardship for TJT Properties.

TRIMAS CORP: Moody's Assigns Loss-Given-Default Rating------------------------------------------------------ In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for Trimas Corporation,as well as revised the rating on the company's $438 Million 9.875%Subordinated Notes to B3 from Caa1. Those debentures wereassigned an LGD5 rating suggesting noteholders will experience a75% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

TURBO POWER: Raises GBP6 Million in Common Share Placement----------------------------------------------------------Turbo Power Systems Inc. has conditionally raised GBP6 million byplacing a combination of common shares of no par value in itscapital, and of A-Shares of 8 pence each in the capital of itssubsidiary, Turbo Power Systems Ltd.

In addition, the company has received conditional commitmentsfrom, and undertakings in respect of holders of up to GBP8.8million of loan notes to accept either Common Shares or A-Sharesupon a redemption of those Loan Notes by TPSL. The company willalso issue 3,500,000 warrants over A-Shares to holders of certainloan notes.

The company is posting a circular to its shareholders convening aspecial meeting of shareholders to approve the cancellation of itslisting on the Official List of the UK Listing Authority andtransferring the company's quotation to AIM. As required by theListing Rules, a resolution will be proposed at the SpecialMeeting being convened for Nov. 27, 2006 to cancel the company'slisting on the Official List.

Application will be made for the company's shares to be admittedto trading on AIM and it is expected that the last date ofdealings in the company's shares on the Official List will be Dec.27, 2006 and admission to AIM is expected to occur at 8:00 a.m onthe following day. The Toronto Stock Exchange has conditionallyapproved the listing of these securities. Listing is subject tothe company fulfilling all of the requirements of the exchange onor before Jan. 11, 2007.

Colin Besant, the company's Chairman, commented: "The last 18months have seen TPS make considerable commercial progress and weare now involved in a number of high profile programs with bluechip customers. The funds from the placing announced today willensure that we have the infrastructure to service these programsand can invest in sales and marketing to underpin our continuedgrowth. I am delighted that a significant number of our loan noteholders have chosen to exchange their holdings for common stockand our balance sheet is substantially strengthened as a result.The proposed transfer to AIM will provide us with a regulatoryframework more appropriate to a company of our size and shouldprovide the potential to generate cost savings."

TSX Listing Unaffected

Under the Placing, the company has conditionally placed withinstitutions and other investors, in aggregate 50,000,000 newCommon Shares and 25,000,000 new A-Shares at a price of 8 penceper share.

Once completed, the Placing will raise approximately GBP5.5million. The total net proceeds of the Placing received will beused over time. Approximately GBP5 million will be used to fundworking capital and GBP0.5 million for premises relocation.

As part of the Placing, the directors of the company will inaggregate be subscribing for 612,500 Placing Shares under theterms of the Placing.

KBC Peel Hunt has agreed to subscribe or procure subscribers for50,000,000 Placing Shares which are not taken up by placees underthe Placing.

On Admission KBC Peel Hunt, the company's financial adviser andbroker, has agreed to act as the company's nominated adviser andbroker.

The Placing and the Loan Note Redemption are conditional, interalia, on the passing of the Special Resolution and Admission.

Reasons for Placing

The company has made significant sales progress in 2005 and 2006and has seen continued order book growth, winning a number of newcontracts with major industrial customers. Most of thesecontracts have design, prototype development and field-testingphases, which need to be completed before production revenue isavailable. Once into the production phase significant expenditureis made on stock and work in progress ahead of receiving paymentfor shipped production units, creating a requirement foradditional working capital.

Having experienced strong growth in its order book, the powerelectronics division of the company will require larger premisesin the northeast of England. The company has today announced thata suitable site has been selected and the relocation is expectedto take place in early 2007. Conditional grant funding ofGBP550,000 has been confirmed by One North East, a regional grantdevelopment agency covering the northeast of England, but someadditional funds are required to complete the factory fit out.

Although the majority of the company's product developmentexpenditure is covered by customer funding in the pre-productionphase of contracts, the company is continuing to develop itsproduct portfolio, particularly in its larger size motors andgenerators where the Directors see considerable market potential.

Over the next six to nine months the company has to raiseadditional cash to continue operations. The company hasidentified a number of different methods of raising the funds thatit will require. However, the Directors believe that the Placingis the most appropriate way to secure the company's long-termfuture.

If Shareholders do not vote in favor of the Transfer to AIM, therewill be uncertainty relating to the company's ability to continueas a going concern. If the Special Resolution is not passed, theDirectors will immediately start exploring alternative sources offunding. Based on current expectations the Company will have tocomplete any fundraising by the end of June 2007, at the latest,in order to continue its operations.

The total net proceeds of the Placing received by the company willbe used over time as follows: approximately GBP5.0 million to fundworking capital and GBP0.5 million for premises relocation.

Reasons for the Loan Note Redemption

The Directors believe that a Loan Note Redemption would bebeneficial to the Group, as it would result in a reduction inlong-term debt and an associated reduction in the Group's gearingwhich would help to strengthen the Group's balance sheet. TheDirectors believe that this would enhance the Group's financialcredibility with potential customers and partners. In addition, aLoan Note Redemption would result in a reduction in annualinterest payments and so be beneficial to the Group's cash flows.

Background and Reasons for Transfer to AIM

The Directors believe that AIM is a more appropriate market forthe company and should lead to a simplification of administrationrequirements and lower ongoing costs associated with being apublic company. The Directors also believe that the intendedadmission to AIM will enable the company to agree and executetransactions more quickly should any acquisition or otherdevelopment opportunities arise in the future. The Directors,however, expect no alteration in the standards of reporting andgovernance which the Group currently achieves. The Directorstherefore see the company as continuing to be attractive tospecialist institutional investors as well as to the retailinvestor.

Current Trading and Prospects

During 2005 and 2006 the company has made significant progressboth in building its order book and reducing its cash burn.Revenues have grown significantly and substantial strides havebeen made in focusing resources on commercial programs.

First half results for 2006 show revenue and development income ofGBP2.5 million and operating cash outflow of GBP2.2 million.

Since August 2005 the company has announced a number ofsignificant contract wins. These contracts cover differentproduction periods, with the longest being the Hamilton Sundstandcontract which extends to 2021. As a result of these contractwins the company's order book has grown substantially and thecompany now has long term trading relationships with a number ofblue chip customers. Most of the new contracts are characterizedby an up front design, prototype and testing phase before movinginto a production phase. Whilst the majority of the contractsreceive customer funding in the initial phases it is in theproduction phase that the most significant revenues and cashmargins are expected to be achieved.

Most contracts entered into by the company have a preproductionphase of 12 to 18 months. As a consequence of this order bookprofile the company expects to continue to make losses, and thushave a working capital requirement, until a number of thesecontracts have moved into the production phase.

The company has noted a growing customer interest in itstechnology and has increased its investment in sales and marketingresources in 2006. In addition the company expects to expand itspotential sales pipeline in the near term and is encouraged thatopportunities, such as the recently announced Hamilton Sundstrandcontract, have arisen with the help of end customer referrals.

Special Meeting

A Special Meeting has been convened for holders of Common Sharesat 9.00 a.m. on Nov. 27, 2006 at the offices of KBC Peel Hunt, 111Old Broad Street, London, EC2N 1PH to approve the SpecialResolution and the Ordinary Resolution.

At the Special Meeting the Special Resolution will be proposed toapprove the cancellation of the listing of the Common Shares onthe Official List and the admission of the Enlarged Share Capitalto trading on AIM. At the meeting the Ordinary Resolution toapprove the Amended Stock Option Plan will also be proposed.

A circular incorporating the notice convening the Special Meetingis being posted to holders of Common Shares and will also beavailable for collection from the offices of KBC Peel Hunt Ltd,111 Old Broad Street, London EC2N 1PH for a period of one monthfrom the date of this announcement.

The Directors of the company believe that the Placing is the mostappropriate way to secure the long-term future of the Company.

About Turbo Power

Turbo Power Systems Inc. (TSX:TPS) (LSE:TPS) develops innovativeproducts for power generation and power conditioning. The groupwas established as a spin-off from Imperial College, London, wasfloated on the London stock exchange in July 2000 and soon afterobtained a secondary listing in Toronto. In July 2001, the Groupacquired Intelligent Power Systems Limited, a company specialisingin power electronics.

* * *

In its unaudited, consolidated financial statements for the sixmonths ended June 30, 2006, Turbo Power Systems reportedGBP11,899,000 in total assets and GBP13,008,000 in totalliabilities, resulting in a GBP1,109,000 stockholders' deficit.

According to the Debtors, they have been unable to consummate asale of their assets, despite their attempt to do so.

The Debtors said that they have no remaining unencumbered cashreserves to fund the processing, filing, and confirmation of evenone joint plan of reorganization and disclosure statement, or tocontinue operations and efforts to market their assets.

Headquartered in Dallas, Texas, Unity Virginia Holdings LLCoperates a coal mining and processing company. The company filedfor chapter 11 protection on May 10, 2006 (Bankr. N.D. Tex. CaseNo. 06-31937). James C. Jarret, Esq., and Arnaldo N. Cavazos,Jr., Esq., at Cavazos, Hendricks & Poirot, P.C., represent theDebtor in its restructuring efforts. No Official Committee ofUnsecured Creditors has been appointed in the Debtors' cases.When the Debtors filed for protection from their creditors, theyestimated assets and debts between $10 million and $50 million.

This is the first meeting of creditors after conversion of thejointly administered chapter 11 cases to chapter 7 liquidationproceedings.

All creditors are invited, but not required, to attend. ThisMeeting of Creditors offers the one opportunity in a bankruptcyproceeding for creditors to question a responsible officer of theDebtors under oath about the companies' financial affairs andoperations that would be of interest to the general body ofcreditors.

Headquartered in Dallas, Texas, Unity Virginia Holdings LLCoperates a coal mining and processing company. The company filedfor chapter 11 protection on May 10, 2006 (Bankr. N.D. Tex. CaseNo. 06-31937). James C. Jarret, Esq., and Arnaldo N. Cavazos,Jr., Esq., at Cavazos, Hendricks & Poirot, P.C., represent theDebtor in its restructuring efforts. No Official Committee ofUnsecured Creditors has been appointed in the Debtors' cases.When the Debtors filed for protection from their creditors, theyestimated assets and debts between $10 million and $50 million.

Uranerz Energy has completed installing hydrologic test wells atthese two uranium properties in the Powder River Basin. Thesetest wells were installed for upcoming pumping tests and coresamples of the deposit were taken for the radiation environmentaldata requirements. The pump tests are used to demonstrate thatthe aquifers are confined, and to test the permeability of themineralized sandstone unit for both feasibility and permittingpurposes.

The Wyoming Department of Environmental Quality has approved thecompany's plans for the hydrologic testing of the uranium-mineralized confined aquifers. The hydrologic test wells wereinstalled in accordance with the plan. The company will also becollecting ground water samples in the near term at water wells inthe region, and has reached an agreement with Cameco Corp.'swholly owned US subsidiary, Power Resources Inc., to sample someof their monitor wells located on adjacent uranium properties.

At both the Hank and Nichols Ranch projects, the vegetation andwildlife surveys have been completed and the data are beingincorporated into the mine permit application as appendices, asrequired by the Wyoming Department of Environmental Quality. Soilsurveys are currently ongoing. The mine plan chapter of theapplication is scheduled for management review and incorporationinto this application. At this time, the submittal of theapplication covering both projects is still on schedule for thesecond half of 2007.

Corporate Update

As of the close of business on Oct. 17, 2006, Uranerz Energy hadreceived notice for the exercise of a total of 2,490,000 warrantsto purchase shares of the company. Upon the completion of theexercise of these warrants there will be 34,293,498 shares ofcommon stock issued and outstanding. These "warrant shares" are"restricted securities" as defined in Rule 144 of the SecuritiesAct of 1933, as amended. The company now has approximately $12.5million in treasury, and no debt.

On Oct. 17, 2006, 5,245,000 shares of common stock became eligibleto be resold pursuant to Rule 144 of the Securities Act.

About Uranerz Energy

Based in Vancouver, British Columbia, Uranerz Energy Corporation(AMEX:URZ)(FWB:U9E)-- http://www.uranerz.com/-- is engaged in the acquisition, exploration and development of properties in theuranium sector. The company's goal is to become a primaryproducer of uranium which will be utilized as fuel in the westernworld's nuclear electrical generating facilities.

Uranerz Energy is the only pure uranium company listed on theAmerican Stock Exchange. The company is composed of anexperienced team of mining personnel, many of whom are formerofficers, senior management and employees of the original UranerzExploration and Mining Limited and related companies. The UranerzGroup was acquired in 1998 by Cameco, the world's largest primaryuranium producer.

Going Concern Doubt

Manning Elliott LLP, in Vancouver, Canada, raised substantialdoubt about Uranerz Energy's ability to continue as a goingconcern after auditing the company's financial statements for theyear ended Dec. 31, 2005. The auditor pointed to the company'ssignificant operating losses and need to generate any revenue.

VALMONT INDUSTRIES: Moody's Assigns Loss-Given-Default Rating------------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Ba2 Corporate Family Rating for Valmont IndustriesInc., as well as the rating on the company's $150 Million SeniorSubordinated 6.875% Notes due 2014. Those debentures wereassigned an LGD5 rating suggesting noteholders will experience an82% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

WASTEQUIP INC: Moody's Assigns Loss-Given-Default Rating-------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the B2 Corporate Family Rating for Wastequip Inc., aswell as revised the rating on the company's $100 Million SeniorSecures 2nd Lien Term Loan due 2012 to Caa1 from B3 LGD5, 86%.Those debentures were assigned an LGD5 rating suggestingnoteholders will experience an 86% loss in the event of default.

Additionally, Moody's revised its probability-of-default ratingsand assigned loss-given-default ratings on these loans and bonddebt obligations of the company:

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

WENDY'S INTERNATIONAL: Earns $72 Million in Third Quarter 2006-------------------------------------------------------------- Wendy's International Inc. reported a $72.0 million net incomefor the third quarter of 2006, compared to a $72.1 million netincome for the third quarter of 2005.

The company also reported $623.8 million of total revenues for thecurrent quarter, a 2.5% increase from $608.8 million of totalrevenues for the same period in 2005.

The company anticipates that it will incur additional costs in thefourth quarter, including $4 million to $8 million in pretaxcharges for the closure of Wendy's restaurants and approximately$3 million in pretax expense for research and development relatedto its breakfast test.

In addition, the company expects to record higher expense forperformance-based incentive compensation in the fourth quarter of2006 commensurate with anticipated improved operating resultscompared to 2005.

Board Approves 115th Consecutive Dividend

The company's Board Of Directors approved a quarterly dividend of8.5 cents per share, payable on November 20 to shareholders ofrecord as of November 6. The dividend will be the company's 115thconsecutive dividend. Because the record date for the dividendpayment is before the expiration date of the tender offer,shareholders of record on November 6 who tender their shares inthe tender offer will be entitled to the dividend payment.

Headquartered in Dublin, Ohio, Wendy's International Inc. --http://www.wendysintl.com/-- and its subsidiaries engage in the operation, development, and franchising of a system of quickservice and fast casual restaurants in the United States, Canada,and internationally.

* * *

As reported in the Troubled Company Reporter on Oct. 17, 2006,Moody's Investors Service held its Ba2 Corporate Family Rating forWendy's International Inc.

WILLIAMS PARTNERS: Increases Cash Distribution to 45 Cents----------------------------------------------------------Williams Partners L.P. disclosed that the regular quarterly cashdistribution to its unitholders has been increased to 45 cents perunit, the partnership's third distribution increase this year.

The new per-unit amount is 5.8% higher than the 42.5-centdistribution paid for the second quarter this year. It is also28.6% higher than the partnership's initial distribution level,paid on a pro rata basis in November 2005.

The board of directors of the partnership's general partnerapproved the increase in the quarterly cash distribution, which ispayable on Nov. 14, 2006, to unitholders of record at the close ofbusiness on Nov. 6, 2006.

The distribution increase, the Company says, reflects thecontinued strong performance of Williams Partners' asset base,including the first full quarter of results from its 25.1%interest in Williams Four Corners LLC, and the partnership'sforecast for operating earnings and cash flows. Effective June20, the partnership acquired its interest in Four Corners, whichowns certain natural gas gathering, processing and treating assetsin the San Juan Basin in Colorado and New Mexico, from Williamsfor $360 million.

Alan Armstrong, chief operating officer, said, "Four Corners,which represents one of the largest integrated natural gas-gathering systems in the country, is proving to be a keycontributor to the partnership's financial performance and cashflow,"

As reported in the Troubled Company Reporter on Oct. 24, 2006Moody's Investors Service's relative to the implementation of itsnew Probability-of-Default and Loss-Given-Default ratingmethodology affirmed its Ba3 corporate family rating and its Ba3probability-of-default rating on the Company's 7.5% Sr. Unsec.Global Notes due 2011 on Williams Partners LP.

At the same time, the rating agency assigned an LGD4 rating on thenotes, suggesting noteholders will experience a 67% loss in theevent of a default.

WOLVERINE TUBE: Moody's Assigns Loss-Given-Default Rating--------------------------------------------------------- In connection with Moody's Investors Service's implementation ofits new Probability-of-Default and Loss-Given-Default ratingmethodology for the U.S. manufacturing sector, the rating agencyconfirmed the Caa1 Corporate Family Rating for Wolverine TubeInc., as well as the Caa2 ratings on the company's 7.375% SeniorUnsecured Notes due 2008 and the 10.5% Senior Unsecured Notes due2009. Those debentures were assigned an LGD4 rating suggestingnoteholders will experience a 61% loss in the event of default.

Moody's explains that current long-term credit ratings areopinions about expected credit loss which incorporate both thelikelihood of default and the expected loss in the event ofdefault. The LGD rating methodology will disaggregate these twokey assessments in long-term ratings. The LGD rating methodologywill also enhance the consistency in Moody's notching practicesacross industries and will improve the transparency and accuracyof Moody's ratings as Moody's research has shown that creditlosses on bank loans have tended to be lower than those forsimilarly rated bonds.

Probability-of-default ratings are assigned only to issuers, notspecific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihoodthat any entity within a corporate family will default on any ofits debt obligations.

Loss-given-default assessments are assigned to individual rateddebt issues -- loans, bonds, and preferred stock. Moody's opinionof expected loss are expressed as a percent of principal andaccrued interest at the resolution of the default, withassessments ranging from LGD1 (loss anticipated to be 0% to 9%) toLGD6 (loss anticipated to be 90% to 100%).

Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers'public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies withinsolvent balance sheets whose shares trade higher than $3 pershare in public markets. At first glance, this list may look likethe definitive compilation of stocks that are ideal to sell short.Don't be fooled. Assets, for example, reported at historical costnet of depreciation may understate the true value of a firm'sassets. A company may establish reserves on its balance sheet forliabilities that may never materialize. The prices at whichequity securities trade in public market are determined by morethan a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in eachWednesday's edition of the TCR. Submissions about insolvency-related conferences are encouraged. Send announcements toconferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11cases involving less than $1,000,000 in assets and liabilitiesdelivered to nation's bankruptcy courts. The list includes linksto freely downloadable images of these small-dollar petitions inAcrobat PDF format.

Each Friday's edition of the TCR includes a review about a book ofinterest to troubled company professionals. All titles areavailable at your local bookstore or through Amazon.com. Go tohttp://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday editionof the TCR.

For copies of court documents filed in the District of Delaware,please contact Vito at Parcels, Inc., at 302-658-9911. Forbankruptcy documents filed in cases pending outside the Districtof Delaware, contact Ken Troubh at Nationwide Research &Consulting at 207/791-2852.

This material is copyrighted and any commercial use, resale orpublication in any form (including e-mail forwarding, electronicre-mailing and photocopying) is strictly prohibited without priorwritten permission of the publishers. Information containedherein is obtained from sources believed to be reliable, but isnot guaranteed.

The TCR subscription rate is $725 for 6 months delivered via e-mail. Additional e-mail subscriptions for members of the same firmfor the term of the initial subscription or balance thereof are$25 each. For subscription information, contact Christopher Beardat 240/629-3300.